The Debt Management Roundtable (DMR), an initiative of the Nigerian Economic Summit Group (NESG) and Open Society Initiative for West Africa (OSIWA) has recommended a sustainable approach to debt and revenue strategies of the federal government.
Both parties stated this while formally presenting their full report in Abuja yesterday on debt management and sustainability in ECOWAS to Nigeria’s Debt Management Office (DMO) for possible adoption and implementation.
Inaugurated in March 2021, the DMR was tasked with providing viable alternatives and recommendations that government can apply to ensure that public debt is sustainably managed.
In her remarks, the Director-General, DMO, Patience Oniha, said: “The timing of the launch of the report could not have been more appropriate with the global debt levels already rising pre-COVID-19 and still growing since the COVID-19 pandemic started in the year 2020.
The indications are that the trend will continue as the economic consequences of COVID-19 may linger for a longer period, coupled with the increased economic pressures in the form of rising inflation from higher food and energy prices caused by the Russia-Ukraine war,”
In his presentation, NESG CEO, Laoye Jaiyeola said: “Unsustainable public debt accumulation is inimical to economic growth, not only in Nigeria but ECOWAS as a whole. Nigeria is a focal point for debt sustainability, considering that the country accounts for 50% and 67% of the region’s total debt and GDP respectively. This behoves us to adopt more sustainable strategies to create the required fiscal space for national development, with positive knock-on effects in other ECOWAS nations.”
The DMR Chairman, Taiwo Oyedele, identified corruption in public spending, insecurity, geopolitical challenges, resource over dependency and a shallow tax base as some major drivers of unsustainable debt.
He added: “The DMR report is holistic and includes workable recommendations that, if adopted, can prevent West Africa from getting into a debt trap, which is why the report provides answers that should help steer Nigeria and other ECOWAS countries towards debt sustainability.
