The Debt Management Office (DMO) has emphasized the importance of responsible borrowing practices among state governments in Nigeria. During a workshop held in Abuja, the DMO Director-General, Patience Oniha, urged state officials to adhere strictly to the provisions of the Fiscal Responsibility Act when seeking loans. The workshop, which focused on borrowing guidelines, aimed to equip state governments with the necessary knowledge to manage their debt sustainably.
The DMO has been providing capacity-building programs for sub-national governments, including the 36 states and the Federal Capital Territory, to enhance their understanding of debt management. These programs cover topics such as debt recording, debt sustainability analysis, and medium-term debt management strategies. Oniha stressed that familiarity with borrowing guidelines and adherence to the Fiscal Responsibility Act are crucial for responsible borrowing practices.
The workshop was designed to provide targeted training on the borrowing process, emphasizing the need for states to understand the requirements and procedures for seeking loans. Oniha noted that the training is not focused on the current debt stock of individual states but rather on ensuring that they are aware of the guidelines and regulations governing borrowing.
The DMO’s emphasis on responsible borrowing is significant, given the importance of sustainable debt management in maintaining economic stability. By promoting adherence to the Fiscal Responsibility Act and providing training on borrowing guidelines, the DMO aims to support state governments in making informed decisions about their debt obligations. As Nigeria continues to navigate its economic challenges, the importance of responsible borrowing practices at all levels of government cannot be overstated. The DMO’s efforts to promote sustainable debt management are a crucial step towards achieving economic stability and ensuring the long-term sustainability of public finances.
