Building strong debt management skills is crucial for West African nations, according to Nigeria’s Central Bank Governor, Olayemi Cardoso. Speaking at a training on Annual Borrowing Plans (ABPs) in Abuja, Cardoso emphasized that effective debt management allows governments to invest in essential services without burdening future generations.
Cardoso argued that a balanced and resilient debt portfolio is key. He highlighted the importance of Debt Management Strategies (DMS) – government plans for managing debt levels and securing funding at reasonable costs. He also mentioned developing domestic debt markets as a potential objective for some countries.
Dr. Baba Yusuf Musa, Director-General of WAIFEM, the training co-organizer, acknowledged the challenges faced by debt managers, including fluctuating commodity prices, high debt levels, and rising borrowing costs. He stressed the importance of sound debt management strategies and ABPs to ensure debt sustainability and economic stability. This training aims to equip participants with the skills to develop effective ABPs, which are crucial for implementing national Debt Management Strategies year by year.
Source: Daily Trust