Nigeria Debt Management Office’s $48.8 billion debt violates law, says expert – Economics

Nigeria's Debt Management Office (DMO) violated the law when its borrowing exceeded the set limit of $2.2 billion, Adetilewa Adebajo, an expert on international financial markets, reportedly said. Adebajo also suggested that Central Bank of Nigeria Governor Godwin Emefiele should be investigated for his role in causing the DMO's borrowing to balloon to more than $48.8 billion.

DMO is accused of violating the Fiscal Responsibility Act

Nigeria's Debt Management Office (DMO) broke the law when its loans exceeded $2.2 billion (1 trillion naira), according to Adetilewa Adebajo, an expert on international financial markets. In comments allegedly During an interview with Arise TV, Adebajo argued that the DMO can be sued for violating both the Central Bank of Nigeria (CBN) Act and the Fiscal Responsibility Act.

Although the DMO is allowed to borrow domestically without a mandate from the country's National Assembly, the agency's borrowings, which now exceed $48.8 billion, mean it has broken the law.

"The DMO is not obliged to go to the National Assembly before borrowing money abroad, but the ways and means give them the right. But it shall not exceed N1 trillion. It is at N22 trillion [$48.8 billion], which indicates that they have exceeded the limit. This is where the illegality comes into play," Adebajo was reported to have said.

Expert charts Nigeria's proposed securitization of its debt

Meanwhile another one Test report quoted Adebajo as saying the Governor of the Central Bank of Nigeria, Godwin Emefiele, should be investigated for his role in allowing the DMO to exceed its borrowing limits. Regarding the Nigerian government's plan to securitize its debt for 40 years, Adebajo insisted that this was illegal.

"You want to send the securitization proposal to the Ways and Means Committee of the National Assembly, under what law? There is no law in Nigeria that requires appropriations and appropriations to be submitted to the National Assembly for approval," the expert reportedly said.

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Terence Zimwara

Terence Zimwara is an award-winning journalist, author and writer from Zimbabwe. He has written extensively about the economic struggles of some African countries, as well as how digital currencies can provide an escape route for Africans.

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