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

Must read

5 Types of Licenses for Financial Advisors

Financial advisors help individuals make informed decisions about their finances, but it’s also important to ensure that anyone you trust to manage your...

Legal Clash: Texas Crypto Firm Files Lawsuit Against US SEC Over Digital Asset Regulation

A Texas-based crypto company, Lejilex, along with the Crypto Freedom Alliance of Texas (CFAT), has filed a lawsuit against the US Securities and...

A Leading DeFi Bull Indicator? MetaMask Registers Over 30 Million In 5 Months

MetaMask monthly active users (MAUs) currently stand at over 30 million, a near 2X surge from around 19 million recorded in September 2023. ...

Bitcoin Bullish Signal: Inflows To HODLer Wallets Hit ATH

On-chain data shows the Bitcoin inflows going towards “accumulation wallets” have hit a new all-time high, a sign that could be bullish for...

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.

Terence Zimwara

Terence Zimwara is a Zimbabwe award-winning journalist, author and writer. He has written extensively about the economic troubles of some African countries as well as how digital currencies can provide Africans with an escape route.

Image Credits: Shutterstock, Pixabay, Wiki Commons

More articles

Latest article

5 Types of Licenses for Financial Advisors

Financial advisors help individuals make informed decisions about their finances, but it’s also important to ensure that anyone you trust to manage your...

Legal Clash: Texas Crypto Firm Files Lawsuit Against US SEC Over Digital Asset Regulation

A Texas-based crypto company, Lejilex, along with the Crypto Freedom Alliance of Texas (CFAT), has filed a lawsuit against the US Securities and...

A Leading DeFi Bull Indicator? MetaMask Registers Over 30 Million In 5 Months

MetaMask monthly active users (MAUs) currently stand at over 30 million, a near 2X surge from around 19 million recorded in September 2023. ...

Bitcoin Bullish Signal: Inflows To HODLer Wallets Hit ATH

On-chain data shows the Bitcoin inflows going towards “accumulation wallets” have hit a new all-time high, a sign that could be bullish for...

‘Avoid Ethereum (ETH) At All Costs’ Says Bitcoin Advocate – Here’s Why

Bitcoin supporter Fred Krueger has recently voiced concerns about Ethereum’s (ETH) fundamental trends and potential regulatory hurdles. Krueger’s remarks, shared in a post...