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

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

The Nigerian Debt Management Office (DMO) contravened the law when its borrowings exceeded the set limit which is equivalent to $2.2 billion, Adetilewa Adebajo, an international financial markets expert has reportedly said. Adebajo also suggested that the Central Bank of Nigeria governor Godwin Emefiele should be probed for his role in allowing the DMO’s borrowings to balloon to more than $48.8 billion.

DMO Accused of Contravening the Fiscal Responsibility Act

According to Adetilewa Adebajo, an international financial markets expert, Nigeria’s Debt Management Office (DMO) violated the law when its borrowings exceeded $2.2 billion (1 trillion nairas). In remarks reportedly made during an interview with Arise TV, Adebajo argued that the DMO can be sued for contravening both the Central Bank of Nigeria (CBN) Act and the Fiscal Responsibility Act.

Although the DMO is allowed to borrow domestically without a mandate from the country’s National Assembly, the agency’s borrowings which now exceed $48.8 billion mean it has violated the law.

“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 said.

Expert Slates Nigeria’s Planned Securitization of Its Debt

Meanwhile, a different report quotes Adebajo who said the Nigerian central bank governor Godwin Emefiele should be probed for his role in allowing the DMO to exceed its borrowing limits. Concerning the Nigerian government’s plan to securitize its debt for 40 years, Adebajo insisted that such an would be illegal.

“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 expert reportedly said.

Register your email here to get a weekly update on African news sent to your inbox:

What are your thoughts on this story? Let us know what you think in the comments section below.


Share on facebook
Share on twitter
Share on pinterest
Share on linkedin
On Key

Related Posts

Bitcoin Has Entered Into The Early Bull Phase — Crypto Pundit Avers

Ki Young Ju, the CEO of data analytic firm CryptoQuant is convinced that Bitcoin is on the cusp of a major lift-off as crypto traders continue to switch from a risk-off to risk-on mode. Earlier yesterday, Young tweeted that Bitcoin had “entered into the early bull phase”, suggesting that the top cryptocurrency by market capitalization

Goldman Sachs Ranks Bitcoin Best Performing Asset so Far This Year

Goldman Sachs has ranked bitcoin the best-performing asset so far this year. The cryptocurrency also tops the global investment bank’s list as the asset with the highest risk-adjusted return — above gold, real estate, the S&P 500, and the Nasdaq 100. Bitcoin Outshines Other Investments on Goldman’s Chart Global investment bank Goldman Sachs has reportedly

Global Digital Cluster Coin (GDCC) Is Now Available on LBank Exchange

PRESS RELEASE. LBank Exchange, a global digital asset trading platform, has listed Global Digital Cluster Coin (GDCC) on January 27, 2023. For all users of LBank Exchange, the GDCC/USDT trading pair is now officially available for trading. With its new-age protocol and peer-to-peer network, Global Digital Cluster Coin (GDCC) restructures the concept of money and