CBN Calls for Tighter Public Financial Management
… WAIFEM Trains on Debt Management
By Patience Ikpeme
The Central Bank of Nigeria (XBN) Governor, Olayemi Cardoso, is urging stronger public financial management practices to improve transparency and accountability in government spending.
Cardoso, represented by Dr. Ladi Bala-Keffi, spoke at a regional training on the Annual Borrowing Plan (ABP) co-hosted by the World Bank, IMF, and West African Institute for Financial and Economic Management (WAIFEM) in Abuja.
The Governor emphasized the importance of a holistic approach to debt management. He highlighted the need for strong institutional framework that allows all government agencies to work together to manage public debt effectively, ensuring policies are aligned and stable.
Effective Debt Management Strategies (DMS) and Annual Borrowing Plans (ABP) he said are tools required for a coordinated effort to manage public debt effectively.
I adsition, continuous training and support he noted are crucial for equipping them to handle complex debt management tasks.
Cardoso underscored the importance of regularly disclosing debt portfolios and borrowing activities. Transparency he said builds trust with investors, creditors, and citizens, ultimately leading to lower borrowing costs and more efficient management.
Dr. Baba Yusuf Musa, WAIFEM Director-General (represented by Mr. Yakubu Aliyu), highlighted the challenges faced by West African debt managers to include, volatile commodity prices; high debt levels; limited fiscal space; fluctuating exchange rates and rising borrowing costs
He said these issues threaten debt sustainability and economic stability, impacting citizen well-being. While many countries develop Medium-Term Debt Strategies (MTDS), implementing them effectively can be difficult.
The Annual Borrowing Plans (ABP) training aims to address these challenges by providing a structured framework to translate the MTDS into specific actions like: the ABP aligning with government spending plans, determining funding sources, borrowing instruments, and repayment terms while considering market conditions.
This operationalizes the ABP, outlining the timing and details of each debt issuance, ensuring a steady and predictable inflow of funds to meet government obligations.
In addition, regularly assessing the ABP allows for adaptation to changing economic conditions and policy priorities, promoting efficient debt management and meeting government needs sustainably.
This focus on improving budgetary and debt management practices is expected to enhance transparency in government spending, increase accountability for public finances and promote overall economic stability in Nigeria and the West African region
