Vice President Kashim Shettima has urged Nigeria to transform its public debt into a strategic asset for economic growth and poverty reduction, rather than viewing it solely as a financial burden.
Speaking at the inauguration of the Supervisory Board of the Debt Management Office (DMO) on Wednesday at the State House, Abuja, Shettima emphasized the importance of stronger fiscal and monetary policy coordination to ensure long-term debt sustainability in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda.
Key Points from VP Shettima’s Address:
- Debt as a Development Tool
- Public debt should be used to finance critical infrastructure and support economic growth.
- When prudently managed, borrowing can stimulate growth and reduce poverty.
- Need for Fiscal and Monetary Coordination
- Recent economic challenges highlight the urgent need for better coordination between fiscal and monetary policies.
- Nigeria must ensure that borrowed funds are efficiently utilized to drive sustainable development.
- Commendation for Economic Reforms
- VP Shettima praised President Tinubu’s economic policies, noting his administration’s commitment to fiscal discipline, economic stability, and sustainable development.
- He also acknowledged the efforts of Finance Minister Wale Edun and DMO leadership in managing Nigeria’s sovereign debt portfolio.
- Success in Global Financial Markets
- Nigeria recently issued a $2.2 billion double-tranche Eurobond, which was oversubscribed, signaling strong investor confidence in the country.
“The over-subscription rate of the bonds showed an impressive appetite for our country’s sovereign instruments in the global capital market,” Shettima stated.
Members of the DMO Supervisory Board:
- VP Kashim Shettima – Chairman
- Minister of Finance & Coordinating Minister for the Economy, Wale Edun – Vice Chairman
- Attorney General of the Federation & Minister of Justice, Lateef Fagbemi – Member
- Special Adviser to the President on Economic Matters, Dr. Tope Fasua – Member
- CBN Governor, Olayemi Cardoso – Member
- Accountant-General of the Federation, Dr. Oluwatoyin Sakirat Madein – Member
- DMO Director-General, Patience Oniha – Secretary
What This Means for Nigeria:
- The government aims to reduce debt mismanagement and channel borrowings into productive sectors.
- The DMO will play a central role in ensuring Nigeria's debt remains sustainable while driving economic growth.
- Improved fiscal discipline will enhance investor confidence, attract foreign investments, and strengthen Nigeria’s global financial standing.
