Nigeria can now borrow as much as forty per cent of its Gross Domestic Product (GDP).
This is as contained in the new Medium-Term Debt Management Strategy 2020-2023 as approved by the Federal Executive Council.
In a statement by the Debt Management Office, the increase in the borrowing target is to accommodate new borrowings to fund Budget Deficits and other obligations of the Government.
It, however, says the borrowing still fell below the fifty-five per cent limit recommended by the World Bank for Countries in Nigeria’s category.
The strategy also prescribes seventy percent of the debt be sourced locally and thirty per cent from external sources.
The statement adds that the new Strategy had to be re-worked to reflect the global and local economic impact of the COVID-19 Pandemic and incorporates data from the revised 2020 Appropriation Act and the Medium-Term Expenditure Framework 2021-2023.
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