Public debt saved Nigeria from recession twice — DMO

Debt Management Office/ (DMO) has asserted that debt pulled Nigeria out of recession twice, making it a major propeller of growth.

This was disclosed by the Director-General of the/ DMO, Patience Oniha at a workshop on executive leadership.

According to the DMO boss, public debt was critical in assisting Nigeria’s recovery from the recession brought on by economic shocks that strained the country’s revenue

Oniha stated that the government was aware of the need for caution while borrowing, particularly given the rising public debt and quickly rising debt servicing requirements.

“It is true that the public debt has been growing. We should remember that Nigeria has witnessed economic shocks with major impacts on revenue that have resulted in recession twice, and borrowing was a major tool for reversing the trends.

“However, going forward, there should be a strong emphasis on revenue generation from multiple sources other than crude oil to ensure that debt is sustainable,” Oniha said.

According to her, initiatives to finance capital projects through Public-Private Partnerships should be maintained to reduce the government’s requirement for direct borrowing to fund infrastructure projects.

Nigerian corporates now have access to the International Capital Market through Nigerian Treasury Bills, FGN Bonds, Savings Bonds, Sukuk, Green Bonds, Eurobonds, and Diaspora Bonds, according to Oniha.

She stated that since 2017, when the DMO began issuing Sukuk on behalf of the federal government, the issuances have generated over N365 billion in proceeds, while over $12 million in Eurobonds have been issued since 2011.