The Central Bank of Nigeria (CBN) has commended the West African Institute for Financial and Economic Management (WAIFEM) for its debt management support to Nigerian states.
The CBN Governor, Godwin Emefiele, gave the commendation on Tuesday in Abuja, at a Sub-national Debt Management Performance Assessment Training for participants from states and the Federal Capital Territory (FCT).
The workshop was organised by WAIFEM, in collaboration with World Bank and International Monetary Fund (IMF).
Mr Emefiele, who was represented by Dr Hassan Mahmud, Director, Monetary Policy Department of the CBN, said the support to states would help maximise benefits of borrowings.
“We appreciate the World Bank for their long-standing support in the areas of public, financial and debt management in Nigeria.
“The current effort is to extend this assistance to state governments to enhance their debt management and maximise the benefit of public borrowing through capacity building.
“This will allow the country to reach greater heights in embracing sound practices in public debt management,” he said.
He said that Nigeria has benefited from the system and will continue to do so.
The current effort is to extend this assistance to state governments to enhance their debt management and maximise the benefit of public borrowing through capacity building.
The Director-General of WAIFEM, Dr Yusuf Musa, said the institute was established in 1996, by the central banks of the five West African Anglophone countries.
These countries are the Gambia, Ghana, Liberia, Nigeria, and Sierra Leone, with an observer status occupied by the Republic of Guinea.
Mr Musa said WAIFEM had, in the past 27 years, successfully carried out over 874 capacity-building programmes in macroeconomic, public debt, and financial sector management.
He said the programmes benefited over 24,492 public sector managers from the sub-region and beyond, adding that there was a need to focus on the increasingly topical issue of debt management.
“The scope of sovereign debt management in today’s world is much wider. Though still a subset of fiscal policy, debt management at both the national and subnational levels of government is seen as a separate public policy area with its own objectives.
“Its objective is to focus more on raising the required amount of funding, achieve its risk and cost objectives, strategy development, and accountability,” he said.
He said that since 2007, the World Bank introduced The Government Debt Management Performance Assessment (DeMPA) tool as part of the armoury for effective debt management performance.
According to him, the tool provides a mechanism for assessing debt management performance in developing countries at the national and sub-national levels of government.
“It is based on the Public Expenditure and Financial Accountability (PEFA) format for public financial management and sound practices in government debt management.
“The DeMPA is useful in conducting country dialogue, guiding the design of debt management reform programmes, enhancing donor harmonisation, and monitoring performance over time,” he said. (NAN)
