Report: Nigeria Debt Management Office’s $48.8 Billion Debt Contravenes the Law Says Expert

The Nigerian Debt Management Office (DMO) contravened the legislation when its borrowings exceeded the set restrict which is equal to $2.2 billion, Adetilewa Adebajo, a global monetary markets knowledgeable has reportedly mentioned. Adebajo additionally steered that the Central Bank of Nigeria governor Godwin Emefiele ought to be probed for his function in permitting the DMO’s borrowings to balloon to greater than $48.8 billion.

DMO Accused of Contravening the Fiscal Responsibility Act

According to Adetilewa Adebajo, a global monetary markets knowledgeable, Nigeria’s Debt Management Office (DMO) violated the legislation when its borrowings exceeded $2.2 billion (1 trillion nairas). In remarks reportedly made throughout an interview with Arise TV, Adebajo argued that the DMO could be sued for contravening each the Central Bank of Nigeria (CBN) Act and the Fiscal Responsibility Act.

Although the DMO is allowed to borrow domestically and not using a mandate from the nation’s National Assembly, the company’s borrowings which now exceed $48.8 billion imply it has violated the legislation.

“The DMO is not mandated to go to the National Assembly before they borrow abroad, but the Ways and Means give them the right. But it is not supposed to 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 in,” Adebajo reportedly mentioned.

Expert Slates Nigeria’s Planned Securitization of Its Debt

Meanwhile, a distinct report quotes Adebajo who mentioned the Nigerian central financial institution governor Godwin Emefiele ought to be probed for his function in permitting the DMO to exceed its borrowing limits. Concerning the Nigerian authorities’s plan to securitize its debt for 40 years, Adebajo insisted that such an could be unlawful.

“They want to send the securitisation proposal to the ways and means committee of the National Assembly, under which law? There is no law in Nigeria that states that you take ways and means financing to the National Assembly for approval,” the knowledgeable reportedly mentioned.

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