By Rachael Olokungboye
LAGOS – The Federal government has approved the new debt management strategy which has increased the total public debt as a percentage of gross domestic product from 25 percent to 40 percent.
The executive council of the federal (FEC) has approved the New- Medium – Term debt management strategy on Wednesday 10 2021, which wil run between 2020-2023.
According to a statement by the Debt management office ( DMO) read: the new fiscal sustainability of the target will enable accommodate borrowings to fund shortage and other government obligations.
It added that the government would issue promissory notes to settle government arrears and the means to advance to the central bank of Nigerian.
The policy documents 2020-2023 act was prepared by the (DMO) in Collaboration with relevent stakeholders included the federal ministry of finance, the budget office of the federation, the central bank of Nigeria and Nigeria Bureau of statistics, and the office of the Accountant General of the federation.
Nigerian had two (2) medium-term debt management strategies -2021-2015-2016-2019, prior to the current strategy.
According to the DMO, “The medium -Term debt management strategy(MTDS) is a policy document that provides a guide to the borrowing activities of the government.
