Story perspectives

Nigeria Approves New Debt Strategy to Boost Fiscal Sustainability

8/26/2025

22 2

Summary

Story summary

Nigeria's federal government approved a Medium-Term Debt Management Strategy (MTDS) for 2024-2027, increasing the debt-to-GDP ratio ceiling to 60%.
The strategy focuses on balancing financing needs with fiscal sustainability and enhancing the domestic debt market.
Key benchmarks include limiting interest payments to 4.5% of GDP and adjusting the domestic-external debt mix to 55:45.
The MTDS was developed with assistance from the World Bank and IMF, aligning with international best practices.

1 of 1

Story summary

Nigeria's federal government approved a Medium-Term Debt Management Strategy (MTDS) for 2024-2027, increasing the debt-to-GDP ratio ceiling to 60%.
The strategy focuses on balancing financing needs with fiscal sustainability and enhancing the domestic debt market.
Key benchmarks include limiting interest payments to 4.5% of GDP and adjusting the domestic-external debt mix to 55:45.
The MTDS was developed with assistance from the World Bank and IMF, aligning with international best practices.