Finance
Debt: DMO template excites African Countries
…Uganda, Sudan, others visit Nigeria
By Amarachi Eshiogu
ABUJA-IN its nearly two decades of existence, Nigeria’s Debt management Office, DMO, has not ceased to attract public interest in the discharge of its statutory duties.
Coming at a time when the country was battling with stifling foreign and local debt, it was natural that the attention of the world was glued to the DMO from its inception in 2000. Such interest has remarkably remained till date.
Primarily established to centrally coordinate the country’s debt, which was earlier handled by various agencies, without positive result, the DMO, has been on the track of ensuring good debt management practices that make positive impact on economic growth and national development, particularly in reducing debt stock and cost of public debt servicing in a manner that saves resources for investment in poverty reduction programs.
Like during the administration of former President Olusegun Obasanjo when the DMO in partnership with the finance ministry, facilitated the debt relief Nigeria got from creditor nations, the agency is at it again with the proposal to restructure the debt owed by state governments.
The aim is to extend the life span of such loans while reducing their debt-servicing expenditures. This policy action which now left Nigeria’s insolvent states with enough resources that would have been removed from their accounts by
the banks they are indebted to, has attracted divergent positions from financial experts.
While some applauded the initiative, others simply gave it knocks. Those in support of the move, believes it is the best option available, given the near insolvent state of the nation’s economy.
The argument of the antagonists is that the DMO debt relief would further entrench corruption in the system. They argued that while it is true that the national economy is experiencing a downward trend, most of the states actually compounded the situation through unbridled financial recklessness. Bailing them out would, therefore, amount to
promoting and commending their perceived corrupt tendencies.
But other industry players are quick to discountenance the opinions of the antagonists as probably ill-informed of the workings of the DMO in this regards. They agree that States have been extremely reckless over the years in both spending and borrowing; particularly in the areas refusing to see how to improve Internally Generated Revenue(IGR), they are however quick to add that the DMO should be greatly commended for instilling fiscal discipline amongst the states by way of establishing Debt Offices in all the 36 States of the Federation.
Dr. Anthony Olawale, an Economist said that “the establishment State Debt Management Departments (DMD) have built a very robust and effective tools for states to know their state stock, which hitherto were not known to most of the states”.
“As you know, the DMO conducts debt sustainability analysis at the central level. Now that states have adequate capacity for public debt management having established their DMDs,” he concluded.
Nonetheless, the success of debt package and other interventionist programmes, informed the recent study visit by the Financial Markets Department in the Bank of Uganda in June, 2015.
The aim was to understudy the workings of Nigerian government securities markets as well as have an in-depth understanding and practical workings of the OTC Market for FGN Bonds.
Though, the DMO had in 2005 received requests from Uganda, Sudan, Zambia and Zimbabwe for their Debt Management Offices, Central Bank and National Planning to learn from Nigeria’s experience in public
debt management, the latest visit attested to the widely held belief that the DMO is becoming a model in Africa.
It was gathered that Uganda had twice visited Nigeria for same reasons, which had impacted efficiently on the economy of the East African country.
The first, it was learnt, was in November 2006 when a delegation came to learn from the DMO model as a basis for institutional arrangement.
Towing same line, a delegation from Sudan also came on a study tour to Nigeria on two occasions. Disclosing this, the President of Heritage Savings, Mr. Adegboye Ikiola, who has a deep knowledge of the workings of DMO, said: ’The first delegation came in December 12-16, 2005. Similarly, another delegation from the External Debt Management Unit in the Central Bank of Sudan and Domestic Debt Unit in the Ministry of Finance of Sudan, visited the DMO for a month secondment programme from Monday, June 23 – Tuesday July 15, 2014.
The core objectives of both visits by the Sudanese teams were to learn from the Nigeria’s debt relief and restructuring phases as well as Nigeria’s debt management experiences prior to the establishment of the DMO.’’ Another instance, he said, was a visit by: “A delegation from the Ministry of Finance and National Planning of the Republic of Zambia
undertook a one-week study tour of the Debt Management Office, Nigeria, from 20th – 24th September, 2009. The purpose of the study tour was to enable the Zambians learn how the Debt Management Office, Nigeria is structured, the functions of the Office and how it carries out its responsibilities of managing the country’s public debt and
issuance of the FGN Bonds.’’
‘’I can continue with the examples, because we have to understand what the DMO is doing at this time. A seven-man team from the Zimbabwe Aid & Debt Management Office (ZADMO) in the Ministry of Finance of Zimbabwe visited the DMO for a week study tour from July 17 to 27, 2011 to understudy the processes of establishing and running an
effective debt management office in its efforts to set up a centre of excellence in debt management in Zimbabwe.’’
Another industry expert, Chief Gabriel Nwonuma noted that the DMO has been outstanding on debt management, calling for the sustainability in service delivery.
“Governance is a continuum; the DMO should sustain what it is doing considering the economic crisis in the country. I am happy that they have a very competent team that can sustain its service delivery framework.
DMO staff are frequently invited as resource persons to various training programmes workshops, seminars and conferences by international organizations including the United Nation and World bank’’.
Industry players are of the opinion that given the successes of the MO the Nigerian model should be extended to other African countries to emulate in order to strengthen their debt management profile.
They are as well quick to add that the Office should be encouraged to sustain the training and equipping of her staff for the challenges ahead, particularly in this period that our nation is facing some economic challenges.
Business
VP Shettima insists tax reforms will improve lives and not impoverish Nigerians
Business
AfCFTA $3.4 Trillion Market in Focus as NCDMB, Others move to deepen Intra-Africa Trade
By Modupe Asudo
The 2026 edition of the African Continental Free Trade Agreement (AfCFTA) Summit got underway in Lagos on Monday with regulatory agencies, project promoters, and financial institutions focused on deepening intra-Africa trade, a unified code of standards for professional qualifications and manufactured goods, and expansion of the frontiers of technological development and innovation.
Critical questions addressed include how AfCFTA’s 1.4 billion population and $3.4 trillion economy could achieve “a strategic shift from fragmented economies towards a globally competitive supply chain system”; how Africa could leverage its vast mineral resources, including copper, iron ore, petrochemical, for domestic production of hardware such as Christmas tree (an assembly of valves, fittings on top of a wellhead to control oil production), and how, hypothetically, Tema Shipyard in Ghana could be designated the vessel construction, assembly and repairs hub for Africa.
Related questions were how cables manufactured in Nigeria, hypothetically, could benefit from favourable trade terms in Angola; what compliance requirements a sacrificial anode producer in Nigeria would have to meet in regard to the rule of origin requirement to export anodes to Algeria for protection and longevity of pipelines, storage tanks, offshore platforms, etc., and what other support levers would be required to achieve energy security for Africa besides expanded refining capabilities in Dangote Refinery, laying of continental gas transmission pipelines, and establishment of industrial parks and other support infrastructure.
In a keynote address at the event, the Executive Secretary of the NCDMB, Engr. Felix Omatsola Ogbe, represented by the Director, Corporate Services, Dr. Abdulmalik Halilu, disclosed that Nigeria’s oil and gas industry embraced AfCFTA and developed a framework for domesticating the policy in 2022.
According to him, implementing AfCFTA in the industry was anchored on three broad pillars, namely, Opportunities Identification, Capacity Development, and Capacity Exportation. In regard to opportunities, he said Nigeria’s strength lies in formidable supply chain in oil field services, refining capacity, oil field logistics base, gas supply pipelines, and a pool of qualified oil field technical workforce.
On capacity development, he pointed out that Nigeria’s oil and gas industry, through the local content law, has developed capabilities in the oil and gas value chain spanning marine vessel asset ownership, fabrication, assembly and installation of production systems, including Christmas trees, pressure vessels, and pumps.
What remains unresolved, described by the Executive Secretary as “the next frontier and the reason for convening the Summit,” is capacity exportation. He posited for consideration a unified work permit and visa that would enable, say, “a welder in Senegal to be engaged in Arlec Engineering Works, Johannesburg, South Africa, for fabrication of heat exchangers, storage tanks, pressure tanks, pressure vessels, etc.”
In examining the importance of achieving continental economic integration, Engr. Ogbe explained that strong regional supply chains would shift Africa from exporting raw materials to producing high-value goods. For pathways to integration, he listed regional value chains, infrastructure connectivity, regulatory harmonization, industrial clusters, and small and medium scale enterprises (SME) inclusion.
He assured industry stakeholders and participants maximum support by the NCDMB.
Business
AfCTA: NCDMB provides roadmap to $3.4tn continental market
By Modupe Asudo
The Nigerian Content Development and Monitoring Board has outlined a practical framework for positioning Nigeria’s energy sector to access the African Continental Free Trade Area, following a strategic webinar focused on meeting rules-of-origin requirements for continental trade.
The Board held a pre-conference webinar on Wednesday ahead of the Nigeria Local Content AfCFTA Energy Summit scheduled for Monday, February 9, 2026.
The engagement was attended by stakeholders from the oil and gas, power and renewable energy sectors, and they addressed how Nigerian products and services can qualify for preferential market access across 54 African countries with a combined gross domestic product of $3.4tn and a population of about 1.4 billion people.
Entitled ‘Meeting AfCFTA Origin Requirements in Energy Trade’, the webinar focussed on one of the major barriers facing Nigerian exporters under AfCFTA — structuring production and operations to meet origin requirements that determine eligibility for duty-free and preferential trade.
The initiative was supported by the Executive Secretary of NCDMB, Engr. Felix Omatsola Ogbe, and the Acting Director of Planning, Research and Statistics, Mr. Ene Ette, as part of preparations for the forthcoming Nigeria Local Content AfCFTA Energy Summit, with the theme ‘Unlocking Africa’s Energy Future through AfCFTA: Trade, Innovation and Regional Integration’.
Speaking during the session, a communications analyst, Joseph Nwokedi, representing the Acting National Coordinator of Nigeria’s AfCFTA Coordination Office, Mrs Patience Okala, stressed the central role of energy in Africa’s economic integration under AfCFTA.
He urged Nigerian companies to shift their focus from Nigeria’s domestic market of about 200m people to the wider continental market of 1.4bn consumers.
“Without energy, there’s no industrialisation. Without energy, regional value chains remain aspirational,” Nwokedi said. “With AfCFTA, energy transforms from a domestic infrastructure issue into a tradable, investable and exportable sector within an integrated African market.”
He noted that even one per cent penetration of the African market translates to about 14m consumers, underscoring the scale of opportunity available to Nigerian energy firms.
The webinar identified four key pathways through which Nigeria’s energy sector can participate in AfCFTA-enabled trade. First, Nigeria’s Electricity Act of 2023 allows independent power producers to supply electricity directly to industrial clusters and export processing zones, positioning power generation as a foundation for trade-ready manufacturing.
Second, the country has submitted commitments under AfCFTA that enable professionals such as engineers, electricians, geophysicists and energy auditors to export services across Africa, subject to mutual recognition of qualifications.
Third, refined petroleum products, gas derivatives, electricity and renewable energy components can be traded across borders under preferential tariffs, provided they meet AfCFTA rules of origin.
Fourth, AfCFTA’s investment protocol, combined with recent domestic reforms, including the Presidential Directives on Investment Incentives for 2024–2025, strengthens Nigeria’s credibility for attracting cross-border investments in power generation, transmission, renewable energy and storage infrastructure.
Delivering a technical presentation, Assistant Comptroller of Customs, Burhan Sulaiman, explained that AfCFTA would eliminate tariffs on 90 per cent of goods traded within the bloc over five to 10 years, with an additional seven per cent liberalised over 13 years. However, he stressed that these benefits were conditional on meeting origin requirements.
“Companies lose benefits because origin was treated as an afterthought,” Sulaiman said. “You must build in origin compliance from the beginning, not while already running your project. Origin determines whether you export duty-free or pay full tariffs.”
He clarified that origin is determined by where economic production takes place, not by company ownership or registration. Foreign-owned companies producing in Nigeria can export as Nigerian origin, while Nigerian companies importing finished goods cannot claim AfCFTA preferences.
Sulaiman explained that products qualify for preferential access through two routes. “Wholly obtained” goods are entirely produced within AfCFTA member states, such as crude oil and natural gas extracted in Nigeria, as well as locally generated electricity regardless of fuel source.
The second route, “substantial transformation”, applies where foreign inputs are used and requires compliance with one of three tests: a change in tariff classification; a value-addition threshold limiting foreign content to between 30 and 60 per cent of ex-works price; or completion of specific prescribed processes such as distillation, cracking or reforming for petroleum products.
He provided sector-specific guidance, noting that in oil and gas, locally extracted crude and gas qualify, just as refined petroleum products that meet processing requirements. However, simple blending, basic distillation operations and modular refineries using imported crude without substantial transformation do not qualify.
In the power sector, he explained, locally generated electricity and regionally manufactured equipment with deep component transformation qualify, while installation-only activities, imported turbines, transformers and switchgear mounting do not.
“For renewables, regional solar cell and battery cell manufacturing with deep component processing qualify,” he said, adding that panel installation alone, simple module assembly and packaging imported batteries do not meet the thresholds.
Sulaiman warned that without regional manufacturing accumulation, power equipment exports fail origin tests.
According to him, the Nigeria Customs Service applies a five-step verification process for origin claims, including confirming accurate HS codes, reviewing production records, testing for minimal operations, verifying African input origins and ensuring consistency across certificates, production records and cost documentation.
“Weak documentation kills origin claims. Even genuinely originating products can be denied if documentation is incomplete or inaccurate,” he noted.
Both speakers emphasised that origin compliance should be treated as a core business strategy rather than a regulatory formality.
“Origin is not paperwork; it is strategy,” Sulaiman said. “It shapes where you locate facilities, how you source inputs, and where you sign regional contracts. Treat it as strategic from day one.”
Nwokedi urged Nigerian firms to act early. “AfCFTA is happening now. Early movers will shape supply chains, standards and partnerships. Are you going to lead, or simply follow?”
Officials also provided updates on AfCFTA implementation, noting that 92 per cent of rules of origin had been agreed, with negotiations ongoing in the textiles and automotive sectors.
An online dispute resolution mechanism has been established to coordinate Customs authorities, standards bodies and complainants.
Nigeria has deployed a fully operational electronic certification system for paperless trade, while Nigerian Customs is introducing risk-management frameworks that could allow exporter self-certification on commercial invoices.
Following a five-year implementation review led by the Minister of Industry and Investment, Dr Jumoke Oduwole, government sensitisation efforts have intensified through partnerships with the Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture; Women’s Chambers of Commerce; zonal outreach programmes and ‘P3 engagements’ involving the press, private sector and public institutions.
“The government will not trade under AfCFTA — our exporters will,” officials said. “If they win, we win.”
Nigerian Customs also reiterated its open-door policy for pre-export origin verification to help businesses avoid delays and additional costs at the border.
The webinar highlighted Nigeria’s potential as a regional energy and transition-fuel hub, building on frameworks such as the West African Power Pool to support cross-border electricity trade.
Key recommendations included structuring projects for origin compliance from inception, forming regional joint ventures, aligning with continental standards and leveraging AfCFTA service commitments to export Nigerian energy expertise.
The session ended with confirmation that the webinar was a technical precursor to the Nigeria Local Content AfCFTA Energy Summit, which will convene policymakers, industry leaders and trade experts to develop strategies for maximising Africa’s energy potential under the AfCFTA framework.






