The Debt Management Office (DMO) has called on Nigerians to always monitor the use of funds borrowed by their state governments for development purposes.
The Managing Director of DMO, Dr Abraham Nwankwo made the call in an interview with the News Agency of Nigeria (NAN) on Monday in Abuja.
“Every Nigerian should be genuinely and responsibly concerned about the use of resources, particularly public resources, whether borrowed or un-borrowed resources.
“In this case, DMO and other stakeholders as well as the general public have a responsibility to continue monitoring to ensure that first of all, governments borrow only for purposes they are allowed to borrow in the various laws.
“Secondly, that when they have borrowed, this resources are used effectively, efficiently and without waste and that the funds are not misdirected; they are directed for the purposes for which they were borrowed.”
According to him, people should ensure that projects are designed, developed and managed in such a manner that they generate revenue that will be of benefit to the people.
This, he added, would help to put public officials in check and ensure that they applied the resources to effective use.
On borrowing by state governments, he noted that both the states and the Federal Government were cautious about borrowing from either domestic or external sources.
He said that DMO had been monitoring developments in the market and that the two tiers of government had so far borrowed in consonance with the laws.
“States, for now – as far as borrowing is concerned – are not to the best of our knowledge, doing anything against the rule. The laws are very specific as to when states can borrow; how they can borrow; from where they can borrow; for what purpose they can borrow.”
On Nigeria’s debt profile, Nwankwo said as at December 2011, the external debt profile stood at 5.6 billion dollars.
“That external debt includes federal and states governments and that 5.6 billion dollars debt was about 2.8 per cent of our Gross Domestic Product.
“So all the states debts that are being talked about plus the Federal Government debt make up the 5.6 billion dollars.
“So the states’ external debt is not different from the 5.6 billion dollars debt which we have been talking about.”