Economy

FEC Approves New Debt Management Strategy 2020 – 2023 –DMO

Published

4 years ago

Feb 10, 2021.

Debt management strategy

The Federal Executive Council (FEC) has, at its meeting on Wednesday, approved a new Medium Term Debt Management Strategy (MTDS) for Nigeria, for the period 2020-2023, according to the official website of the Debt Management Office (DMO).

DMO explained that the MTDS was a policy document that provided a guide to the borrowing activities of a government in the medium-term, which is usually four years.

It said: “it is recognised as one of the best practices in public debt management and is recommended by the World Bank and International Monetary Fund (IMF).

“This is to ensure that public debt management is driven by a well-articulated strategy that is structured to meet a country’s broader macroeconomic and public debt management objectives.

“The MTDS, 2020-2023 has been prepared by the DMO, in collaboration with Federal Ministry of Finance, Budget and National Planning and the Central Bank of Nigeria.

“Other collaborating stakeholders are the Budget Office of the Federation, National Bureau of Statistics and the Office of the Accountant-General of the Federation.”

The DMO revealed that Nigeria has had two previous MTDS (2012-2015 and 2016-2019), prior to the current Strategy, which was designed with a consideration of the impact of the COVID-19 pandemic.

“The new Strategy had to be re-worked to reflect the global and local economic impact of the COVID-19 pandemic and it incorporates data from the revised 2020 Appropriation Act and the Medium-Term Expenditure Framework 2021-2023.

“It seeks to meet its financing needs, taking into consideration the cost of borrowing and the associated risks, while ensuring debt sustainability in the medium to long-term,” the DMO explained.

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