The Debt Management Roundtable (DMR), on Thursday, formally presented its full report on debt management and sustainability in ECOWAS to Nigeria’s Debt Management Office (DMO) for possible adoption and implementation.
The Nigerian Economic Summit Group (NESG) and Open Society Initiative for West Africa (OSIWA), at a presentation, held at the National Debt Management Office in Abuja, was graced by stakeholders from Nigeria’s public and private sectors, including Dr. Abel Essien, ECOWAS Commission; Paul Adeyeye, OSIWA and Zainab Mangga, the International Monetary Fund (IMF) Country Office.
Inaugurated in March 2021, the DMR was tasked with providing viable alternatives and recommendations that government can apply to ensure the public debt is sustainably managed.
The urgency of the initiative was in response to growing concerns over rising debt profile in major countries including Nigeria and possible spillover effects to other ECOWAS economies if left unchecked.
In her keynote address, The Director-General, DMO, Patience Oniha, said: “The timing of the launch of the report could not have been more appropriate with the global debt levels already rising pre-COVID-19 and still growing since the COVID-19 pandemic started in the year 2020.
“Concerns around debt sustainability have expectedly been heightened.
“According to the World Bank’s World Economic Outlook, ‘Globally, sovereign debt grew from 49.1% of GDP in 2014 to 57.9% in 2019, and in sub-Saharan Africa, from 35.1% of GDP in 2014 to 55.4% in 2019.
“The respective figures for 2021 were 66.7% and 60.3%. The indications are that the trend will continue as the economic consequences of COVID-19 may linger for a longer period, coupled with the increased economic pressures in the form of rising inflation from higher food and energy prices caused by the Russia-Ukraine war.
“The IMF projects in its World Economic Outlook for April 2022 that the average Debt to GDP Ratio in West Africa is expected to rise to 67.2% in 2022 from 56.4% in 2019.”
In a statement by NESG Chief Executive Officer, ‘Laoye Jaiyeola, he highlighted the depth of research and sub-regional collaboration involved in the production of the report, as well as its significance for sustainable debt management across the region, if implemented.
He said: “At the NESG, our mission is an open, inclusive, sustainable and globally competitive economy.
“We champion sustainable debt management because unsustainable public debt accumulation is inimical to economic growth, not only in Nigeria but ECOWAS as a whole.
‘Nigeria is a focal point for debt sustainability, considering that the country accounts for 50% and 67% of the region’s total debt and GDP respectively.
“This behoves us to adopt more sustainable strategies to create the required fiscal space for national development, with positive knock-on effects in other ECOWAS nations.”