LAGOS OCTOBER 3RD (URHOBOTODAY)-The Director General of Debt Management Office (DMO), Dr Abraham Nwankwo has affirmed that despite the nation’s economic down turn due to decline in global oil price Nigeria remains at low risk of debt distress.
Nwakwo who gave the assurance yesterday during a one day enlightenment workshop for members of Guild of Corporate Online Publishers (GOCOP) in Lagos said in line with sound public debt management practice, Debt Management Office conducted an annual National Debt Sustainability Analysis (DSA) in conjunction with relevant stakeholders in 2014 to update 2013 DSA so as to set a new borrowing limit for government, advise on funding options and provide input into the MTEF, adding that the result of the DSA showed that the country has continue to remain at a low risk of debt distress.

According to him, “As at the end of financial year 2014, the Debt-to-GDP ratio was 12.65 percent which compared favourably to the global threshold of 56 percent .for countries in Nigeria peer groups.”
He pointed out that although the ratio from the general thresholds indicate that the country’s debt remains sustainable from the country’s specific solvency and liquidity threshold, it is critical to note that with a debt service to revenue ratio of 25.20 as at the end of December 2014 compared to a threshold of 28, the country is virtually approaching the limit of debt service to revenue threshold.

Nwankwo therefore advised on the need to exercise more caution in the country’s borrowing activities while extra effort should be intensified to generate more revenue from both existing and new sources.
He said as part of the efforts to consolidate the gains recorded in engendering effective public debt management at the sub-national level, DMO continued with its initiatives of strengthening public debt management capacity at the state level in 2014 through organization of several capacity building workshop for officials of Debt Management Departments (DMD) in Zamfara and Plateau states, adding that Akwa Ibom, Bayelsa, Delta, Katsina, Plateau and Rivers States took part in another workshop designed to assist them over come challenges in rendering accurate and reliable debt data.
He advised the public to login to the website of DMO, www.dmo.gov.ng so as to get full understanding of Nigerian debt management level.
The Director General described the emergence of online newspapers as a new window that can support national development if properly harnessed by public and private institutions.
He noted that online publishing as become a force to reckon with worldwide, saying Nigeria should also take advantage of the new window to ensure timely dissemination of information.
He therefore, charged Online Publishers who are all GOCOP members to see themselves as “very valuable partner in the development of our country”.
While calling for strong partnership between Online Publishers and DMO, Mr. Nwankwo stressed further, “Online Publishers must not undervalue or devalue their roles in national development”.
The DG said the workshop was organized as part of DMO’s enlightenment programme, saying Online Publishers as critical stakeholders should assist his office to further enlighten the public on the activities of DMO.
Opening paper presentation, Director (Market Development), Ms. Patience Oniha, focused on all about borrowing especially from the International Capital Market (ICM) while Mr. Dele Afolabi (Head of Portfolio Management), spoke on processes and procedures for borrowing either from bilateral or multi-lateral sources.
The third paper presented by Mrs. Hannatu Suleiman, Director (Debt Recording and Settlement) dwelt on debt settlement, stakeholders involved and control measures.
On her part, Mrs. Asmau Mohammed, Director (Strategic Progrmmes), spoke about functions and activities of DMO since inception.
In his brief remarks, GOCOP President, Mr. Malachy Agbo, thanked the DMO Boss, Mr. Nwankwo and his management team for deeming it fit to partner with Online Publishers.
Established by Debt Management Act 2003, DMO is responsible for maintaining reliable database of all loans taken or guaranteed by the Federal, State or any other agencies; prepare and submit to the FG a forecast of loan service obligations for each financial year among others.