FEC Approves New Debt Management Strategy For Nigeria
BY AWONIYI OLAKUNLE, ABUJA – Federal Executive Council (FEC) at its meeting of February 10, 2021 approved a new Medium Term Debt Management Strategy for Nigerians for the period 2020-2023.
The Medium Term Debt Management Strategy (MTDS) is a policy document that provides a guide for the borrowing activities of the government in the medium term usually covering a period of four years.
It is recognised as one of the best practices in public debt management and it is recommended by the World Bank and International Monetary Fund (IMF) to ensure that public debt management is driven by well-articulated strategy that is structured to meet a country’s broader macroeconomic and public debt management objectives.
MTDS 2020-2023 has been prepared by the Debt Management Office in collaboration with relevant stakeholders that include the Federal Ministry of Finance, Budget and National Planning, Central Bank of Nigeria, Budget Office of the federation, National Bureau of Statistics, and the Office of the Accountant General of the Federation.
The implementation of the Medium Term Debt Management Strategy over the years has helped in managing the structure of the growing public debt and ensured debt sustainability as well as effectiveness in public debt management.
With the approval of the MTDS 2020-2023 by FEC, the strategy will be implemented to support economic development in ensuring that the public debt is sustainable.
