Vice President Kashim Shettima has emphasised that Nigeria must view its public debt not as a financial burden but as a potential asset for Economic Growth and Poverty reduction. He made the statement during the inauguration of the Supervisory Board of the Debt Management Office (DMO) in Abuja, aimed at strengthening fiscal and Monetary Policy coordination. Shettima, who chairs the board, urged members to devise a more strategic approach to managing public debt, with a focus on long-term Sustainability aligned with President Bola Ahmed Tinubu’s Renewed Hope Agenda.
Moreover, the Vice President noted that, when managed prudently, debt can serve as a tool for the development of critical infrastructure. He explained that the nation’s public debt, if well applied, can contribute to economic growth and poverty alleviation, aligning with the government’s agenda for fiscal discipline, economic stability, and sustainable development. Shettima further highlighted that, with prudent management, borrowing has the potential to propel progress and foster development, rather than becoming a burden on the nation’s finances.
Nigeria’s recent success in the global market boosts optimism.
In addition, Shettima also recognised Nigeria’s recent achievements in the global financial market, highlighting the over-subscribed $2.2 billion double-tranche Eurobond issuance as proof of growing investor confidence in the country’s economic reforms. He then praised President Tinubu’s leadership for steering the country through significant economic changes, noting the crucial role of the Minister of Finance and Coordinating Minister for the Economy, along with the Debt Management Office’s leadership, in the effective management of Nigeria’s sovereign debt.
Furthermore, the newly inaugurated board includes Olayemi Cardoso, Governor of The Central Bank of Nigeria (CBN) (member); Lateef Fagbemi, Attorney General of the Federation and Minister of Justice (member); Dr. Oluwatoyin Sakirat Madein, Accountant-General of the Federation (OAGF) (member); Dr. Tope Fasua, Special Adviser to the President on Economic Matters (member); Patience Oniha, Director-General of the Debt Management Office (Secretary); and Wale Edun, Minister of Finance and Coordinating Minister for the Economy (Vice Chairman). This experienced team will guide the nation’s debt management efforts to ensure fiscal sustainability and economic growth.
Debt management can unlock Nigeria’s growth potential.
The government’s strategic focus on prudent debt management reflects a growing recognition of the need for careful fiscal planning to balance development goals with economic realities. By positioning public debt as a resource, Nigeria could address Infrastructure gaps and unlock growth potential in sectors critical for long-term stability. This approach could also create opportunities for job creation and improved living standards, further contributing to the nation’s overall development. However, effective execution requires ensuring that borrowing leads to tangible, value-generating outcomes, rather than contributing to the country’s debt burden.
Beyond strategic debt management, there is a critical need to improve the nation’s fiscal transparency and accountability, which will help maintain investor confidence. Policies must focus on fostering greater foreign direct investment, diversifying the economy, and reducing reliance on external debt. By improving transparency and creating a more attractive environment for investors, Nigeria can boost economic growth and reduce its vulnerability to external shocks. Shettima’s remarks reflect a significant shift in policy, but successful implementation will be essential to realise these goals.
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Ultimately, Nigeria’s economic future is closely tied to its ability to manage debt as a sustainable asset. While addressing immediate infrastructure needs is crucial for growth, it is equally important to ensure long-term fiscal health. By carefully balancing short-term borrowing with prudent Investment strategies, the country can build a stronger foundation for its future. Strategic debt management, coupled with efforts to diversify the economy, will help reduce Nigeria’s reliance on External Debt and create a more resilient economic structure. Only through disciplined fiscal policies and targeted investments can Nigeria harness the potential of its public debt to foster growth, reduce poverty, and secure a stable economic future for generations to come.