The Debt Management Office (DMO) has stressed the need for responsible borrowing among Nigeria’s state governments. At a workshop in Abuja, DMO Director‑General Patience Oniha urged officials to strictly follow the Fiscal Responsibility Act when seeking loans. The session, which focused on borrowing guidelines, aimed to equip state governments with the knowledge required for sustainable debt management.
The DMO has been delivering capacity‑building programs to sub‑national governments—including all 36 states and the Federal Capital Territory—to improve their understanding of debt management. These programs cover debt recording, debt sustainability analysis, and medium‑term debt management strategies. Oniha emphasized that familiarity with borrowing guidelines and compliance with the Fiscal Responsibility Act are essential for responsible borrowing.
The workshop provided targeted training on the borrowing process, highlighting the importance for states to understand the requirements and procedures for obtaining loans. Oniha clarified that the training does not address the current debt stock of individual states; rather, it ensures that officials are aware of the governing guidelines and regulations.
Promoting responsible borrowing is crucial for maintaining economic stability through sustainable debt management. By encouraging adherence to the Fiscal Responsibility Act and offering training on borrowing guidelines, the DMO seeks to help state governments make informed decisions about their debt obligations. As Nigeria navigates ongoing economic challenges, responsible borrowing at all levels of government is vital, and the DMO’s efforts represent a key step toward economic stability and the long‑term sustainability of public finances.
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