The Debt Management Office has called on state governments to strictly adhere to the provisions of the Fiscal Responsibility Act and other applicable laws when undertaking borrowing activities.

The Director General of the Debt Management Office, Ms Patience Oniha, gave the charge at a workshop on borrowing guidelines organised for officials of state governments in Abuja.

Oniha explained that the workshop formed part of the DMO’s ongoing capacity building programme designed for sub national governments, with focus areas including debt recording, debt sustainability analysis, medium term debt management strategy and established borrowing procedures.

She stated that the training was specifically aimed at ensuring that state governments fully understand and comply with the legal requirements governing borrowing, as provided for in the Fiscal Responsibility Act, the DMO Act, the Investment and Securities Act, as well as the Constitution of the Federal Republic of Nigeria.

Clarifying the objective of the programme, Oniha said, “This workshop on borrowing guidelines is a targeted training. It is not about debt stock, but about understanding the requirements and the process for borrowing.”

She recalled that in previous years, borrowing requests submitted by some state governments often experienced delays due to inadequate understanding of the stipulated guidelines, despite the fact that such requests are required by law to pass through the Minister of Finance and the Debt Management Office.

According to her, the workshop was introduced to address this recurring challenge and has been expanded this year to accommodate a larger number of participants, with each state represented by between five and eight officials.

Oniha emphasised the non negotiable nature of compliance with statutory provisions, stating, “There is no flexibility when it comes to the law. If it is in the law, you must comply.”

She further explained that a proper understanding of the borrowing process would enable state governments to raise funds required for development projects without unnecessary delays, irrespective of the source of financing, including loans from development finance institutions such as the World Bank.