6 Functions of the Debt Management Office are listed and explained herein, the article also outlines its strides aimed at mandate delivery.
The DMO was established on 4th October 2000 to look into the coordination and management of Nigeria’s debt, which was before now done by a large number of establishments in an uncoordinated manner. This was done to ensure a more coordinated pattern of debt Management in Nigeria.
Functions of the Debt Management Office
The debt Management office performs a number of functions aimed at its mandate delivery prior to its establishment.
The Functions of the Debt Management Office are as follow:
1. It creates and maintains a comprehensive central external and internal debt database
This is very vital for reference purposes and for good decision-making on the part of the Nigerian government.
Having a database for debt is one of the debt management office’s strides aimed at ensuring proper documentation of debts internally and externally and this has been of great help to the government in key decision-making.
2. Design and implementation of the overall risk management strategies
In partnership with related agencies, the debt management office plays a major role in creating a good design for the proper implementation of risk management strategies in Nigeria. This is done to ensure that Nigeria’s debt is managed so as to prevent a situation of total bankruptcy.
3. Assessment and evaluation of loan Proposals
In Nigeria, the debt management office plays the role of assessing and actually examining proposals made for loans. This is done to ensure that loan transactions are taken good care of.
4. Advises the government on appropriate sources of funding for government projects and programs
It is the role of the Debt Management Office to advise the government on decision-making as it pertains to ways of scouting funds for its projects and programs aimed at alleviating poverty or raising the standard of living of its citizens.
5. It helps to Formulate, implement and update the country’s debt management objectives policies, and strategies
This is done to ensure that there’s proper documentation of Nigeria’s debt Management policies to ensure future usage of such. This also assists in good policy-making too.
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6. It helps to oversee the regular analysis of the public debt portfolio and provides appropriate advice when needed
This is achieved through a routine inspection of public debt by the different subunits of the debt management office. This helps to ensure that debts are being checked to enhance economic growth while making remittances.
In all, the debt management office has played a great role in ensuring that the debt of a country as great as Nigeria is well managed.
Over the years, the debt Management office has lived up to the expectations prior to its establishment and its strides are commendable.