Come 2019, the Nigerian government plans to borrow from overseas about 40% of all the debt it plans to raise.

The plan is to borrow more from foreign sources in 2019 in order to re-balance the ratio between foreign and domestic debts.

The Debt Management Office, which disclosed this in its Strategic Debt Management Plan 2018 – 2022 in Abuja, on Monday said it planned to attain 40% on foreign debt component of public debt by December 2019.

According to DMO, the move towards contracting more foreign debt is to take advantage of cheaper lending rates abroad and a bid to free the local debt market to enable the private sector to access more funds.

Also Read: 7 Sub-Saharan African Countries With The Highest Foreign Debt

The DMO said: “Following the expiration of the Third Strategic Plan (2013 – 2017), and in recognition of the evolving roles of the DMO, and the need to align public debt management activities with government’s economic policy thrust, as encapsulated in the Economic Recovery and Growth Plan, among others, the need to develop a new Strategic Plan therefore, became imperative.

“The building blocks for the Fourth Strategic Plan are: Changing investor needs and higher investor expectations from the DMO on products and services; government’s prioritisation of the development of infrastructure which requires new and more creative ways of financing; the active and supportive role expected of the DMO under the ERGP, two of whose pillars are reducing the infrastructure gap and a private sector-led growth.”

Nigeria’s current total debt of 22.38 trillion naira as of June 30 is composed of 15.63 trillion naira local debt and 6.75 trillion naira foreign debt.

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