| Background:
The DMO was created in September 2000, to assume responsibility for
the management of the nation's entire debt portfolio. This responsibility
involves a number of inter-related functions, including among other
things: formulating debt management objectives; administering the
national debt; organizing debt data; financing annual budgetary deficits
and managing the primary and secondary market sales of government
debt.
Problem Statement: Nigeria's debt management
has been characterized by severe and persistent structural deficiencies
and chronic inefficiencies. Debt management had been conducted in
an increasingly volatile environment of fiscal dominance and budgetary
imprudence.
Approach: Rationalize and coordinate
debt management functions between the DMO, the Central Bank of Nigeria
(CBN), the Federal Ministry of finance (MoF), and the Office of
the Accountant-General of the Federation (OAGF); Implement a long-range
debt management plan that facilitates the Government of Nigeria's
(GON) program for economic reform, macroeconomic stabilization,
and growth; Build the GON/DMO's capacity to develop a market-based
means of public finance, through the issuance of government securities;
Re-engage debt management with the budget formulation and implementation
process; and, Develop a domestic debt management organization capable
of providing analytical tools and policy alternatives to policymakers
of the GON.
Anticipated Results: Development and
implementation of a government securities issuance program to continue
to fund budget deficits without recourse to inflationary monetary
financing; Development of the Nigerian treasury bill market and
lengthening of the maturity structure of outstanding debt; Support
and promotion of the development of a secondary market for government
securities by developing a primary dealer/market-maker network;
implementing a repurchase agreement program to foster liquidity,
and developing and implementing a strategy for enhanced trading
platforms to enhance price discovery and support the price formation
process; Development in collaboration with other stakeholders a
regulatory framework for government securities to ensure market
integrity and instill investor confidence; Development of cash management
capability through the development appropriate analytical tools;
Development of risk management and research capabilities to provide
information and data essential for a dynamic and active debt management,
bond issuance and secondary market program; Training and capacity
building of appropriate DMO personnel; Development and implementation
of a strategy to develop appropriate debt instruments in support
of the on-going pension reform program; To analyze the environment
of the secondary mortgage market; identify constraints to the development
of the market and liaise with stakeholders to develop a plan of
action that will stimulate private sector participation in the development
of products that will make mortgage finance feasible and accessible.
Last Updated
on:
March 05, 2009
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