Shettima inaugurates DMO supervisory board, says debt can reduce poverty with prudent management

Vice-President Kashim Shettima says public debt can drive growth and reduce poverty with prudent management.

Shettima spoke on Wednesday while inaugurating the supervisory board of the Debt Management Office (DMO) at the presidential villa in Abuja.

According to a statement by Stanley Nkwocha, the senior special assistant to the president on media and communications, the inauguration is part of the federal government’s efforts to strengthen fiscal and monetary policy coordination and ensure long-term debt sustainability.

Addressing the board members, Shettima, who also serves as chairman, urged them to adopt a more strategic approach to public debt management.

He said Nigeria must continue to leverage public debt for the development of critical infrastructure.

“With prudent management, debt can be transformed into an asset for economic growth and poverty reduction,” the vice-president said.

“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 said the approach aligns with President Bola Tinubu’s ‘Renewed Hope Agenda’, which prioritises fiscal discipline, economic stability, and sustainable development.

He stressed that borrowing should not be viewed solely as a financial liability but rather as an essential tool for national development, provided it is applied responsibly.

“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 added.

He commended Tinubu for his commitment to economic reforms, acknowledging his administration’s efforts towards reforming the Nigerian economy.

The vice-president also praised Wale Edun, the minister of finance and coordinating minister of the economy, along with the leadership of the DMO, for their dedication to managing the nation’s sovereign debt portfolio.

‘BOND’S OVERSUBSCRIPTION TESTAMENT TO INVESTOR CONFIDENCE IN NIGERIA’

Shettima highlighted Nigeria’s recent success in the international financial market, particularly the issuance of a $2.2 billion double-tranche eurobond.

He described the bond’s oversubscription as a testament to investor confidence in Nigeria’s economic prospects.

“The over-subscription rate of the bonds showed an impressive appetite for our country’s sovereign instruments in the global capital market,” Shettima said.

The supervisory board comprises the minister of finance who serves as vice chairman, Lateef Fagbemi, attorney-general of the federation and minister of justice; and Tope Fasua, special adviser to the president on economic matters.

Other members include Olayemi Cardoso, governor of the Central Bank of Nigeria (CBN); Oluwatoyin Madein, accountant-general of the federation (OAGF); and Patience Oniha, director-general of DMO, who acts as secretary.