The Director-General of Nigeria’s Debt Management Office (DMO), Ms. Patience Oniha, has urged state governments to explore Public-Private Partnerships (PPPs) for infrastructure development and reduce reliance on borrowing. She made the remarks on Tuesday in Lagos at a one-day workshop on Borrowing Guidelines for Policy Makers under the States Action on Business Enabling Reforms (SABER) Programme, supported by the World Bank.
Oniha stressed that borrowing should not be the primary source of funding, urging states to increase tax revenue and leverage PPPs to attract private investment and expertise. “Public-private partnerships can help improve Nigeria’s economy by accelerating project delivery, reducing financial burdens on government, and enhancing the quality of public services,” she said, noting that PPPs also create jobs, stimulate local businesses, and foster innovation.
She emphasised the importance of efficient tax collection, saying it strengthens fiscal health, reduces pressure on borrowing, and ensures funds are available for public investment in health, education, and infrastructure. “So revenues are absolutely important. Borrowings must generate something that generates revenue,” Oniha added.
The DMO chief also highlighted the need for prudent use of borrowed funds and sustainable debt management, noting that Nigeria has previously experienced debt crises. She referenced past reforms following the 2005 debt relief programme, stressing the importance of legal and regulatory compliance to avoid repeating history.
The workshop aimed to familiarise state fiscal policymakers with current borrowing laws and regulatory requirements, ensuring responsible fiscal management.
In a related address, Lagos State Commissioner of Finance, Mr. Abayomi Oluyomi, revealed plans to securitise some state assets, both liquid and depreciating, to strengthen finances. He attributed the surge in Lagos State’s debt stock to the sharp depreciation of the Naira under the current administration, which increased liabilities without new foreign borrowing. Oluyomi added that the state would now limit external borrowing to concessional loans with repayment terms exceeding 20 years.
