Nigeria adopts a fresh debt plan for 2024–2027, setting strict sustainability targets to stabilize borrowing and reassure investors.
The Federal Government has approved Nigeria’s Medium-Term Debt Management Strategy (MTDS) for 2024–2027 to promote debt sustainability, fiscal stability, and growth of the domestic securities market, the Debt Management Office (DMO) announced on Saturday.

Developed with support from the World Bank and IMF, the MTDS balances government financing needs with debt sustainability and risks, in line with global best practice.
Under the plan, Nigeria’s debt-to-GDP ratio is capped at 60 percent by 2027, while interest payments-to-GDP must not exceed 4.5 percent. Sovereign guarantees are limited to 5 percent of GDP, with a domestic-to-external debt mix adjusted to 55:45 to reduce foreign exchange risk.
The framework also restricts refinancing risk to 15 percent of debt maturing within a year, sets average debt maturity at a minimum of 10 years, and reduces foreign exchange debt share to 45 percent.
According to the DMO, the strategy was formulated with input from the Central Bank of Nigeria and the Ministry of Finance, alongside technical contributions from the World Bank and IMF. The agency noted the plan will reassure investors, credit rating agencies, and global partners of Nigeria’s commitment to responsible debt management and fiscal discipline.
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