Deji Elumoye in Abuja
Vice President Kashim Shettima has declared that Nigeria must continue to use public debt as a vehicle for the development of critical infrastructure and tool for economic growth and poverty reduction.
He spoke yesterday, in Abuja, while inaugurating the Supervisory Board of the Debt Management Office (DMO) as part of efforts by the federal government to strengthen fiscal and monetary policy coordination and ensure long-term debt sustainability in line with President Bola Tinubu’s Renewed Hope Agenda.
In his speech at the maiden meeting of the Board at the State House, the Vice President who doubles as Chairman of the Board charged members to come up with a more strategic approach to public debt management.
According to him: “With prudent management, debt can be transformed into an asset for economic growth and poverty reduction. Our goal must be to formulate policies, regulations, and guidelines for the DMO, with a view to achieving long-term debt sustainability for our country.”
The Vice President stressed that borrowing, when applied prudently, could serve as a catalyst for economic growth rather than a financial liability.
“As you all know, public debt, if prudently applied, becomes an asset for economic growth and poverty reduction. However, recent realities in our economy call for stronger coordination between our fiscal and monetary policies,” he said.
Shettima commended Tinubu for his economic reforms, acknowledging the President’s dogged efforts towards reforming the Nigerian economy.
He also praised the Minister of Finance and Coordinating Minister of the Economy, Wale Edun and the DMO leadership for their untiring efforts in the day-to-day management of the nation’s sovereign debt portfolio.
He added: “I also use this opportunity to congratulate them and other members of the Nigerian delegation for a successful outing in the recent $2.2 billion double-tranche Eurobond issuance. The over-subscription rate of the bonds showed an impressive appetite for our country’s sovereign instruments in the global capital market.”
Other members of the Board are Edun (Vice Chairman); Attorney General of the Federation and Minister of Justice, Lateef Fagbemi (member); Special Adviser to the President on Economic Matters, Dr. Tope Fasua (member); Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso (member); Accountant-General of the Federation (OAGF), Dr. Oluwatoyin Sakirat Madein (member), and Director-General of the Debt Management Office, Patience Oniha (Secretary).
