DMO is the engine room of the Nigerian Economy – Hon. Ajayi, House Committee Chairman; Some of our milestones so far – DG

In line with the usual Legislative tradition, the Committee on Aids, Loans and Debt Management of the House of Representatives undertook a familiarisation visit to the Debt Management Office, DMO, on Wednesday, February 10, 2016.
The main purpose of the visit was to provide members of the Committee, led by its Chairman, Honourable Adeyinka Ajayi, a firsthand view of the DMO and also serve as a platform to interact and exchange ideas with the DMO Management Team on its operational procedures.
In his welcome address, the Director General, DMO, Dr. Abraham Nwankwo thanked the Chairman and members of the Committee for ‘the special favour of coming to be with us’ and expressed the DMO’s appreciation of the ‘invaluable support and deep collaboration it has always enjoyed from the Committee which he said ‘has taken the DMO through turbulent times in the nation’s recent economic experience’.
In his response, the Chairman of the Committee, Honourable Adeyinka Ajayi, whilst acknowledging the crucial role the DMO has played in the management of the country’s economy, described the visit as significant and historic. According to him, the DMO is the engine room of the Nigerian Economy whose initiatives have often prevented the economy from going into recession.
He noted that with the current stiff challenges being faced by the country as a result of the sharp decline in revenues from the sale of crude oil, the DMO is once again, expected to play a pivotal role in the effort to steer the economy out of trouble.
In his presentation titled ‘Brief on the Mandate and Activities of the Debt Management Office, the DG DMO briefly recounted the background to the establishment of the DMO and outlined the milestones achieved by the Office since its inception. Dr. Nwankwo reviewed the successes recorded by the DMO in revamping the hitherto moribund domestic debt market and the successful launch of the Nigerian flag in the international capital market with its debut 500 million USD Eurobond issuance in 2011 and subsequent issuances in 2013 to raise funds towards financing the deficits in the national budget.
He cited the successful programme through which the DMO has assisted the 36 States of the Federation and the FCT to establish their own Debt Management Departments (DMDs) and the novel fiscal stabilisation intervention of the DMO which saw to the restructuring of the debts owed to banks by some States into long tenured bonds. The DG stressed the need for Nigerians to face the reality that oil boom was over and may not recur anytime soon, by making wise decisions to invest in infrastructure, revamp agriculture, improve power supply and focus on the real sector. This, he said will make the economy more productive and competitive.
There was a brief question and answer session during which members asked questions relating to the country’s debt profile, its sustainability and the mechanisms in place to ensure proper utilisation of borrowed funds. Answers were provided by the DG and his team to the satisfaction of the Honourable members. At the end of the session, the Chairman thanked the DG for his rich and educative presentation and pledged the Committee’s readiness to continue to partner with the DMO towards ensuring the achievement of its strategic objectives.