Nigeria’s Public Debt Management Strategy Still Intact—DMO

By Dipo Olowookere

The Debt Management Office (DMO) has denied reports that Nigeria’s Public Debt Management Strategy has expired.

In a statement issued on Thursday its head of media, Mrs Chinenye Onu, the debt office said the strategy, which was approved by the Federal Executive Council (FEC) in June 2013, will expire in December 2019.

However, ahead of its expiration, the DMO said efforts are being made to come up with another strategic plan to manage the nation’s public debt, which is over N22 trillion.

Mrs Onu, who released the statement to clarify reports that the debt office’s 2013 to 2017 strategic plan had expired last December without a replace, noted that the nation’s strategic plan was different from the agency’s plan.

According to her, the DMO’s plan covers issues such as human resources, technology, and market development, amongst others.

“This contrasts very sharply with the Public Debt Management Strategy which is entirely about the strategies for managing the public debt to ensure that borrowing is prudent and the public debt is sustainable,” she said.

Mrs Onu stated that “the public should be assured that the strategy is being implemented in full.”

According to her, “Preparation of a new strategic plan that will deliver a new, robust and all-encompassing strategy is at the final stage.

“A robust strategic plan became necessary due to developments in the macro-economy, the Economic Recovery and Growth Plan (ERGP) and the need to come up with creative ways to fund the government in the face of lower revenues.

“Thus, a new strategic plan for the DMO had to be prepared in a holistic manner to incorporate these developments and expectations. The old pattern of preparing the strategic plan would have been grossly inadequate.”

Business Post reports that section 6(c) of the DMO Establishment Act 2003 mandates the DMO to “prepare and implement a plan for the efficient management of Nigerian’s external and domestic debt obligations at sustainable levels compatible with desired economic activities for growth and development; and participate in negotiations aimed at realising those objectives.”