DMO unfolds new debt management strategy

Proshare - Facebook Proshare - Twitter Proshare - Linked In Proshare - WhatsApp

July 11, 2007/Punch



The Debt Management Office will on Monday unfold its new strategy for the management of public debt in the country following the country’s exit from the Paris and London Club debts.


A statement issued by Head of Corporate Affairs at DMO, Mr. Nasir Mahmoud, in Abuja on Wednesday said the new strategy will be unfolded at a workshop on Debt Sustainability Analysis.


He said the workshop will assess new financing possibilities towards meeting Nigeria ’s development needs. This, according to him, will take into account, the post debt relief investment climate, the current macroeconomic reforms and policy environment and the timeline towards meeting Millennium Development Goals.


It will also produce a national debt sustainability analysis report that will feed into and help guide Nigeria’s future external, domestic and sub-national debt strategies.



Meanwhile, new Director General of the organisation, Dr. Abraham Nwankwo, has said the present challenge is to be proactive in the management of the nation’s public debt



Nwankwo who spoke at an interactive session with journalists, said getting debt relief is not the real essence of public debt management.



He said, “We sought debt relief because there was an ailment and we needed to address that ailment; so we sought debt relief.



“Public debt management is about proactive, acquisition of additional resources through borrowing, and using these additional resources to generate growth and development in order to improve the welfare of the people.



“Because most modern nation states, indeed all, are unable to cover their developmental objectives using tax revenue, so invariably, there is cause to borrow; that is invariably the norm.



“You have to acquire resources beyond what you collect from tax revenue in order to fast track growth and development so that the welfare of your people would be raised. And this is the whole essence of public debt management. Therefore, the challenge now is for us to go into proactive public debt management.”  - Punch (and picture too)



Related News