The Central Bank of Nigeria (CBN) has said that it is vital to disclose debt portfolios and borrowing activities routinely as transparency builds trust with investors, creditors, and the public.
It added that it creates a virtuous cycle that reduces borrowing costs and promotes efficient debt management.
Mr Olayemi Cardoso Governor of the Central Bank of Nigeria (CBN) stated this on Monday at the opening ceremony of the Regional Training on Annual Borrowing Plan (ABP) Development jointly organized by the World Bank, the International Monetary Fund (IMF) and WAIFEM in ABUJA.
Represented by Ms Ladi Raulatu Bala-Keffi, Acting Director in the CBN, Mr Cardoso stated that investing in human capital and capacity development is equally crucial, stressing that “We must continuously provide our debt management professionals with the necessary training, mentorship, and technical assistance. Moreover, it is vital to make the disclosure of our debt portfolios and borrowing activities routine.”
The apex bank Governor added, “This transparency builds trust with investors, creditors, and the public, creating a virtuous cycle that reduces borrowing costs and promotes efficient debt management.”
He pointed out that in today’s interconnected world. effective debt management is not just a technical exercise but a strategic necessity, which ensures that governments can finance critical investments in infrastructure, education, healthcare, and other essential services without jeopardizing the well-being of future generations.
According to him, strengthening national capacities for debt management is crucial for meeting the government’s funding needs both now and in the future in a cost-effective and risk-conscious manner, noting that countries must prioritize building a balanced and resilient debt portfolio.
“At the core of sound public debt management is the Debt Management Strategy (DMS) – a formal plan devised by the government to achieve its debt management objectives”, Mr Cardoso stated.
He said the way forward lies in formulating robust Debt Management Strategies (DMS) and Annual Borrowing Plans (ABP) which cannot be done in isolation but require a comprehensive approach involving a well-coordinated institutional framework for public debt management and a stable macroeconomic environment.
Mr. Cardoso noted that strengthening the budgetary process and accounting systems to enhance transparency and accountability is also essential.
In his remarks, Dr. Baba Yusuf Musa Director-General West African Institute for Financial and Economic Management (WAIFEM) said the presence of Mr. Cardoso signifies the importance the Board of Governors places in the quest for excellence.
Represented by Mr Yakubu Aliyu, he said for WAIFEM, the course is a significant milestone in view of the critical importance of Annual Borrowing Plan (ABP) development.
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