Nigeria must transform its public debts into strategic assets for economic growth and poverty reduction, rather than viewing it as a financial burden, Vice President Kashim Shettima said yesterday.
Shettima spoke while inaugurating the Supervisory Board of the Debt Management Office (DMO) at the State House, Abuja.
The board is part of the Federal Government’s efforts to strengthen fiscal and monetary policy coordination and ensure long-term debt sustainability in line with President Bola Ahmed Tinubu’s Renewed Hope Agenda (RHA).
Speaking during the meeting as Board chair, the vice president charged the members to come up with a more strategic approach to public debt management.
Shettima noted that Nigeria must continue to use public debt as a vehicle for the development of critical infrastructure and tool for economic growth and poverty reduction, a statement by the Senior Special Assistant to the President on Media and Communications, Office of the Vice President, Stanley Nkwocha, said.
He said: ‘With prudent management, debt can be transformed into an asset for economic growth and poverty reduction.
‘Our goal must be to formulate policies, regulations, and guidelines for the DMO, with a view to achieving long-term debt sustainability for our country’.
Shettima explained that this approach aligns with the Renewed Hope Agenda of President Tinubu’s administration, which prioritises fiscal discipline, economic stability, and sustainable development.
He said borrowing, when applied prudently, could serve as a catalyst for economic growth rather than a financial liability.
‘As you all know, public debt, if prudently applied, becomes an asset for economic growth and poverty reduction. However, recent realities in our economy call for stronger coordination between our fiscal and monetary policies’, he said.
Acknowledging the President’s efforts towards reforming the economy, the vice president commended his doggedness.
He also praised the Minister of Finance and Coordinating Minister of the Economy and the DMO leadership for their untiring efforts in the day-to-day management of the nation’s sovereign debt portfolio.
He said: ‘I want to commend the dedication of our leader, President Bola Ahmed Tinubu, in his dogged efforts towards reforming our economy. I applaud the Honourable Minister of Finance and the Coordinating Minister of the Economy and the DMO management, for their untiring efforts in the day-to-day management of our sovereign debt portfolio’.
The vice president also noted Nigeria’s recent success in the global financial market on the issuance of a $2.2 billion double-tranche Eurobond, which he described as a testament to investor confidence in the country.
He said: ‘I also use this opportunity to congratulate them and other members of the Nigerian delegation for a successful outing in the recent $2.2 billion double-tranche Eurobond issuance.
‘The over-subscription rate of the bonds showed an impressive appetite for our country’s sovereign instruments in the global capital market’.
The Board, which has the Minister of Finance and Coordinating Minister for the Economy, Wale Edun as its vice chairman and Director-General of the Debt Management Office, Patience Oniha (Secretary).
Other members are: Attorney-General of the Federation and Minister of Justice, Lateef Fagbemi, SAN; Special Adviser to the President on Economic Matters, Dr. Tope Fasua; Central Bank of Nigeria (CBN) Governor Olayemi Cardoso and Accountant-General of the Federation (OAGF), Dr. Oluwatoyin Sakirat Madein.
