The national debt office warned state governments to follow the law when taking loans. The DMO director general, Patience Oniha, spoke at a training session in Abuja for state officials. She said borrowing outside the legal framework risks their financial health.
Oniha explained that the workshop teaches the proper process for getting domestic or foreign loans. This includes adhering to the Fiscal Responsibility Act, which she called mandatory, not optional. She mentioned that past delays happened because states did not understand the rules, prompting these sessions.
She listed key laws governing public debt, like the Constitution and the DMO Act. The goal is to help states navigate the system efficiently to fund development projects. Oniha stressed that even loans from institutions like the World Bank must go through the same approval steps. The DMO wants states equipped with this knowledge to ensure smooth and responsible borrowing.
Oniha explained that the workshop teaches the proper process for getting domestic or foreign loans. This includes adhering to the Fiscal Responsibility Act, which she called mandatory, not optional. She mentioned that past delays happened because states did not understand the rules, prompting these sessions.
She listed key laws governing public debt, like the Constitution and the DMO Act. The goal is to help states navigate the system efficiently to fund development projects. Oniha stressed that even loans from institutions like the World Bank must go through the same approval steps. The DMO wants states equipped with this knowledge to ensure smooth and responsible borrowing.
