Federal Government Debt Rebalancing Strategy: Is it a Policy Path for Sustainable Debt Management?

Abstract

One of the major challenges facing the Muhammed Buhari led Federal government like previous governments is the issue of huge budget deficit financing. The 2018 Budget just like other previous budgets is premised on oil revenue. Other sources of financing in the 2018 budget include domestic and foreign loans. The Federal government has explored the domestic debt financing sources through Domestic Bank loans, issuance of bonds as well as FGN Treasury bills. The Treasury bills are usually short term sources of debt financing with maturity period of 60 to 90 days.