DMO to set up Public Debt Management Institute
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- Category: Business
- Written by Kayode Ekundayo, Lagos
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An estimated 85 per cent of Nigeria’s external debts are concessionary from multi-lateral agencies spanning decades of repayments.
According to the DMO, most of the borrowings by the public sector are long-term in nature for infrastructure purposes.
The DMO said the repayments are long to match the revenue generated from the investments. Nigeria’s total debt portfolio stands at about $34.7bn dollars at the end of December last year, emphasising that Nigeria’s debt position is very healthy. Nwankwo said the country must learn from other countries and keep the debt profile under ‘healthy’ conditions.
He called for fiscal responsibility on the part of the government at the centre to prevent a relapse into unsustainable debt pile up.
The DMO chief also stressed that the federal government has commenced plans to scale back on its aggressive public borrowing exercise that began some five years ago. The government, through the DMO, has raised an estimated N5trillion from the domestic economy in half a decade.
He said one of the plans of reduced government debt issuances is the fiscal consolidation of budget 2011, reducing the ratio of deficit to GDP ratio to 3.62 per cent from previous year’s 6.6 per cent.
In order to encourage the private sector, the government last year waived the tax on income earned on bond purchases in order to reduce coupons on corporate bonds.
Articles
DMO to set up Public Debt Management Institute
Category: Business Written by Kayode Ekundayo, Lagos Hits: 686
A new knowledge-based faculty to be known as the Public Debt Management Institute is soon to be set up by the Debt Management Office (DMO). The Director General of the DMO, Dr Abraham Nwankwo, who disclosed this, said the new institute will not be a separate organisation from the DMO but will be a research-based faculty designed to disseminate knowledge of public debt issues amongst Nigerians. Nwankwo also said the new institute will be set up as soon as the National Assembly passes the new bill seeking to amend the DMO’s Act.An estimated 85 per cent of Nigeria’s external debts are concessionary from multi-lateral agencies spanning decades of repayments.
According to the DMO, most of the borrowings by the public sector are long-term in nature for infrastructure purposes.
The DMO said the repayments are long to match the revenue generated from the investments. Nigeria’s total debt portfolio stands at about $34.7bn dollars at the end of December last year, emphasising that Nigeria’s debt position is very healthy. Nwankwo said the country must learn from other countries and keep the debt profile under ‘healthy’ conditions.
He called for fiscal responsibility on the part of the government at the centre to prevent a relapse into unsustainable debt pile up.
The DMO chief also stressed that the federal government has commenced plans to scale back on its aggressive public borrowing exercise that began some five years ago. The government, through the DMO, has raised an estimated N5trillion from the domestic economy in half a decade.
He said one of the plans of reduced government debt issuances is the fiscal consolidation of budget 2011, reducing the ratio of deficit to GDP ratio to 3.62 per cent from previous year’s 6.6 per cent.
In order to encourage the private sector, the government last year waived the tax on income earned on bond purchases in order to reduce coupons on corporate bonds.