Nigeria’s Foreign Debt Profile Cannot Collapse Economy, Says DMO Chief

DESPITE the whooping external debt of 11 billion dollars incurred by Nigeria, the Director General of Debt Management Office (DMO), Dr. Abraham Nwankwo yesterday disclosed that the precarious condition couldn’t make the nation’s economy collapse.

Besides, in the face of the international indebtedness, the nation’s domestic debt profile standing at 11 trillion naira, is being serviced by government through settlements of local contractors and other creditors.

Speaking with journalists in an interview shortly after the opening ceremony of a one-day enlightenment workshop for students’ union leaders in the country, Dr. Nwankwo gave reasons why Nigeria’s economy cannot collapse in the face of debt pressure, stressing that the economy is resilient and diversifiable.

Rather than depressing, Nwankwo argued that the economy was becoming more robust under the present administration, while calling on Nigerians to cooperate with President Muhammadu Buhari to achieve the desired change.

Earlier, in opening remarks at the occasion, the DG reminded the students that they are future leaders, and as such they should imbibe positive attitudes to the leadership position of the nation for the betterment of the society. The workshop was titled, “Understanding Public Debt Management”.

Nwankwo explained: “Presently Nigeria owes domestically about N11 trillion and externally, about N11 billion dollars. Let me emphasise that debt matter is not just the quantum, what is important is how these resources are deployed to encourage growth, development, generate employment and reduce poverty.”
“Secondly, what matters when you borrow is whether you are in a position to pay back and to service it as at when due.

And in the case of Nigeria, I want to assure you that Nigeria remains sustainable.”
The DMO boss further stated: “Based on current global economic problems, particularly the collapse of oil prices, all of us should be aware that this is having significant impact on economies all over the world.
“But even at that I can assure that the Nigerian economy is very resilient because government is in control, and Nigeria will continue to remain sustainable.”