{"id":74040,"date":"2025-08-24T17:52:42","date_gmt":"2025-08-24T17:52:42","guid":{"rendered":"https:\/\/abujacityjournal.com\/livenews\/?p=74040"},"modified":"2025-08-24T17:52:42","modified_gmt":"2025-08-24T17:52:42","slug":"nigeria-rolls-out-2024-2027-debt-strategy-to-cut-fx-risk-strengthen-sustainability","status":"publish","type":"post","link":"https:\/\/abujacityjournal.com\/livenews\/2025\/08\/24\/nigeria-rolls-out-2024-2027-debt-strategy-to-cut-fx-risk-strengthen-sustainability\/","title":{"rendered":"Nigeria Rolls Out 2024\u20132027 Debt Strategy to Cut FX Risk, Strengthen Sustainability"},"content":{"rendered":"<p><strong>By Onyeanya Ebere Immaculata<\/strong><\/p>\n<p>&nbsp;<\/p>\n<p>The Federal Government has unveiled a new Medium-Term Debt Management Strategy (MTDS) for 2024\u20132027, aimed at improving debt sustainability, reducing foreign exchange exposure, and boosting investor confidence.<\/p>\n<p>According to the Debt Management Office (DMO), the strategy\u2014approved by the Federal Executive Council (FEC)\u2014sets clear targets, including extending the average debt maturity to at least 10 years and cutting the share of foreign exchange-denominated debt from 51.75% to 45%. The domestic-to-external debt mix will also shift from 48:52 to 55:45 in favor of domestic borrowing.<\/p>\n<p>To curb refinancing risks, the MTDS caps debt maturing within one year at 15% and sets a 5% ceiling for short-term debt as a share of GDP. It also allows for a gradual rise in Nigeria\u2019s debt-to-GDP ratio, projected to climb from 52.25% at end-2024 to a maximum of 60% by 2027. Interest payments will be capped at 4.5% of GDP, while sovereign guarantees will not exceed 5%, compared to the current 2.09%.<\/p>\n<p>The DMO said the strategy, developed with technical support from the World Bank and International Monetary Fund (IMF), is designed to balance the government\u2019s financing needs with prudent debt management, while deepening Nigeria\u2019s domestic securities market through innovative instruments.<\/p>\n<p>Developed in consultation with the Central Bank of Nigeria (CBN), and the Federal Ministry of Finance, the MTDS is expected to strengthen Nigeria\u2019s credit ratings, enhance investor trust, and reinforce the government\u2019s commitment to responsible debt management.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Onyeanya Ebere Immaculata &nbsp; The Federal Government has unveiled a new Medium-Term Debt Management Strategy (MTDS) for 2024\u20132027, aimed at improving debt sustainability, reducing foreign exchange exposure, and boosting investor confidence. According to the Debt Management Office (DMO), the strategy\u2014approved by the Federal Executive Council (FEC)\u2014sets clear targets, including extending the average debt maturity [&hellip;]<\/p>\n","protected":false},"author":33,"featured_media":74041,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1718,172],"tags":[],"class_list":["post-74040","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance","category-news"],"aioseo_notices":[],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/74040","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/comments?post=74040"}],"version-history":[{"count":1,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/74040\/revisions"}],"predecessor-version":[{"id":74042,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/posts\/74040\/revisions\/74042"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media\/74041"}],"wp:attachment":[{"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/media?parent=74040"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/categories?post=74040"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/abujacityjournal.com\/livenews\/wp-json\/wp\/v2\/tags?post=74040"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}