By Kadiri Abdulrahman
Abuja, Dec. 16, 2025 (NAN) – The Debt Management Office (DMO) says its World Bank-assisted workshop on borrowing guidelines is aimed at educating subnational governments in Northern Nigeria on proper borrowing practices and debt sustainability.
The Director-General of the DMO, Ms. Patience Oniha, stated this on Tuesday at a workshop on borrowing guidelines organised for top policymakers in Abuja.
Oniha explained that the workshop, held under the States Action on Business Enabling Reforms (SABER) initiative, was designed to align borrowing practices at the state level with those of the Federal Government.
She noted that public borrowing involves multiple layers of approval, stressing the need for debt managers and policymakers to understand why such approvals are required.
“Debt is such an important fiscal variable that involves several stakeholders, which is why we have a diverse group here,” Oniha said.
“The objective is that after this workshop, collaboration between participants and their respective states will be strengthened.”
According to her, the workshop seeks to equip subnational governments with the knowledge and skills required to navigate the borrowing process effectively.
“How do we make the process work? How do we ensure subnational governments understand the borrowing framework so they can raise the funds needed for development?” she asked.
“If they do not understand the process, they cannot comply, and they cannot raise the funds.”
Oniha said the ultimate goal was to ensure that states are fully prepared whenever they intend to borrow, thereby making the process smooth and efficient.
“Ultimately, the expectation is that the funds raised will be deployed for development within the states,” she added.
She commended the World Bank for its sustained interest in strengthening public debt management in Nigeria, stressing the importance of debt sustainability.
“Debt is such an important fiscal variable that we cannot stop talking about it. We must get it right to make it sustainable,” Oniha said.
She warned of the consequences faced by countries that mismanage debt, including debt restructuring, credit rating downgrades, and restricted access to international borrowing.
“Because debt is important, there are laws governing borrowing. The process must be transparent, the purpose clear, loans properly documented, monitored, reported, and serviced,” she said.
“When debts are not serviced, the consequences are severe. So, we must continually ask: how do we ensure sustainability? How do we know when to stop borrowing?”
The Acting Head of Service of the Federal Capital Territory (FCT), Mrs. Nancy Nathan, described the workshop as an intersection of opportunity and responsibility.
Nathan said the programme was designed to equip states and the FCT with the tools needed to navigate the complexities of public borrowing in an evolving economic environment.
“In today’s economic landscape, access to finance is not only a necessity but a critical enabler of development,” she said.
She added that the workshop was aimed at demystifying borrowing procedures and clarifying documentation requirements, enabling policymakers to make informed decisions.
“This will enhance our capacity to meet the financial needs of our respective states,” Nathan said.
She urged participants to engage actively, share insights, and collaborate in ways that would drive sustainable development outcomes across the states.
(NAN) (www.nannews.ng)
Sub Zero ✔
Godwin Okafor is the Publisher & CEO of Naija247news Media Group LLC, an independent investigative news platform delivering accurate, data-driven reporting on Nigerian and global politics, economy, finance, and business. Founded in October 2010, Naija247news specializes in developmental journalism, providing timely insights and analysis to readers across Nigeria and the diaspora.
View Archive →
