The Debt Management Office (DMO) has urged Nigerian states to strengthen debt management practices and protect sustainable economic development.
Speaking in Lagos on Tuesday at a World Bank–assisted workshop on “Borrowing Guidelines for Top Policy Makers,” the Director-General of the DMO, Patience Oniha, warned that poor debt practices at the state level could undermine the stability of the entire economy.
She said, “the Federal Government does not borrow alone.
Various laws regulate borrowing, and states must follow them.
More importantly, leaders must use funds prudently and manage debts sustainably.”
Call For PPPs And Stronger Revenue
Drawing from history, Oniha reminded participants that Nigeria had once faced a debt crisis.
Therefore, she cautioned states to avoid repeating the same mistakes.
Moving forward, she urged them to adopt Public-Private Partnerships (PPPs) to ease fiscal pressures and finance infrastructure.
She explained that PPPs reduce government spending, attract private capital, create jobs, and improve service delivery.
In addition, Oniha pressed state governments to strengthen tax collection.
She emphasised that better compliance raises revenue without increasing tax rates.
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“By plugging leakages, governments can secure more funds, cut corruption, and invest in health, education, and infrastructure,” she added.
Lagos Highlights Currency Challenge
Meanwhile, Lagos State Commissioner for Finance, Abayomi Oluyomi, reinforced the call for responsible borrowing.
He argued that fiscal and monetary policies must serve the welfare of the people.
According to him, borrowing drives development only when supported by sound debt management.
However, Oluyomi admitted that naira volatility had sharply increased Lagos’s debt burden.
Nevertheless, he reaffirmed the state’s commitment to sustainable debt management despite the challenge.
The workshop, supported by the World Bank, aimed to equip states with legal and financial tools to strengthen borrowing practices.
