Lagos: The Director-General of the Debt Management Office (DMO), Patience Oniha, emphasized the importance of synergy between the DMO and state governments for effective national debt management. Oniha shared these insights during an interview with the News Agency of Nigeria (NAN) on the sidelines of a World Bank-assisted workshop focused on Borrowing Guidelines for top policymakers held in Lagos.
According to News Agency of Nigeria, Oniha highlighted that the DMO collaborates with state governments to enhance their officials’ understanding of effective debt management. The workshop, which includes all 36 states and the Federal Capital Territory, is part of a broader initiative to educate sub-national governments on debt-related matters. The program starts with the fundamentals of understanding debt and compiling accurate debt figures, ensuring that states are aware of their debt obligations at all times.
The workshop on borrowing guidelines aims to support states’ borrowing requests by clarifying the various laws governing borrowing. Oniha stressed the necessity for governments to comply with legal provisions before borrowing. She explained that sub-national governments need to comprehend the processes, documentation, and purposes associated with borrowing. The Fiscal Responsibility Act, for instance, mandates that borrowing should be directed towards capital projects and human development. States must recognize these eligible reasons and ensure that borrowing is approved by both the State Executive Council and the State Assembly, mirroring federal procedures.
Oniha noted that the DMO had previously identified gaps in the process of processing borrowing requests from state governments. The limited understanding of these procedures made it challenging to process requests efficiently. The workshop is designed to address such gaps, streamlining the process and fostering a better understanding among state officials.
