DMO urges states to comply with fiscal responsibility act in borrowing activities

The Debt Management Office (DMO) has called on state governments to strictly adhere to the provisions of the Fiscal Responsibility Act and other relevant laws in all borrowing activities.

Director-General of the DMO, Patience Oniha, made the appeal during a workshop on borrowing guidelines for state government officials held in Abuja. 

The workshop is part of the DMO’s ongoing capacity-building program for sub-national governments, covering areas such as debt recording, debt sustainability analysis, medium-term debt management strategies, and borrowing procedures.

Oniha emphasized that the training is designed to ensure that states fully understand and comply with legal requirements for borrowing as stipulated in the Fiscal Responsibility Act, DMO Act, Investment and Securities Act, and the Constitution of the Federal Republic of Nigeria.

“This workshop on borrowing guidelines is a targeted training. It is not about debt stock, but about understanding the requirements and the process for borrowing,” Oniha explained.

She noted that in the past, state borrowing requests often faced delays due to a poor understanding of the guidelines, despite the legal requirement for such requests to pass through the Minister of Finance and the DMO. 

The workshop has been expanded this year to include between five and eight officials from each state to ensure wider participation and comprehension.

“There is no flexibility when it comes to the law. If it is in the law, you must comply,” Oniha stressed. She added that proper understanding of the borrowing process would enable states to access development funds without unnecessary delays, including loans from development finance institutions such as the World Bank.