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Nwankwo: Driving A knowledge Based Reform At DMO

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10 years ago

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By Ogunsola Oke
LAGOS-IN order to arrive at a fair and impassioned appraisal of the achievements and challenges of the Debt Management Office (DMO) under the guidance of Dr. Abraham Nwankwo, it is pertinent to summarize the status report of the management of the nation’s debt prior to the establishment of the Debt Management Office (DMO) in October 2000. Before then, the management of our national debt was characterized by systematic and structural deficiencies. In practice, debt management functions were split across several government departments including the Federal Ministry of Finance, the Office of the Accountant General of the Federation and the Central Bank of Nigeria.
DMO 1

DG DMO, Dr. Abraham Nwankwo

This multi-dimensional approach was laden with problems and shortcomings which included operational inefficiencies and poor coordination, inadequate debt data recording system and poor information flow across agencies resulting in inaccurate and incomplete loan records which gave rise to difficulties in the verification of creditors’ claims arising from conflicting figures from various bodies handling the debt management function.
The policy underpinning which gave rise to the establishment of Debt Management Office (DMO) in 2000 centralizing the nation’s debt management functions with the statutory mandate of maintaining comprehensive, accurate and timely records of the nation’s debts, prudent management of the debt portfolio and negotiating with and ensuring debt relief from creditors has brought sanity into the system.
The emergence of Dr. Abraham Nwankwo at the helm of DMO on July 1 2007 almost coincided with the final exit of Nigeria from both the Paris and London club debts in 2006. Before then, our external debts had remained unsustainable as a result of the crushing debt burden arising from the external debt over hang. Following the exit from both Paris and London club debts, our external debt fell from an all-time high of about $35 billion in 2004 with an external debt-to-GDP ratio of over 40 percent to about 3.5 billion in 2006 and an external debt-to-GDP ratio of 2.3 percent respectively.
Although several macroeconomic problems and challenges remained, the debt relief and emergence of Dr. Nwankwo afforded the nation the opportunity for a fresh beginning. Given his solid academic background and position as one of the pioneer management staff of DMO, having joined the agency in 2001, Nwankwo was strategically positioned to lead the charge in the ongoing transformation of the capital market and under his leadership, the Debt Management Office has continued to play a pivotal role in the repositioning, strengthening and resuscitation of the FGN Bond Market. Under his guidance, DMO has relentlessly pursued the realization of its statutory mandate and has recorded verifiable achievements, making it the pride of the nation across Africa and the world. Some of its stellar performance include the formulation of a National Debt Management Framework (NDMF), 2008-2012, a review of same and publication of the revised (2nd) NDMF, 2013-2017 which incorporated debt management policies and guidelines. In addition to the maintenance of an accurate and up to date data which are published periodically, DMO has ensured regular and timely servicing of government’s debt.
As a result of the adoption of sound practices in public debt management, DMO has continued to conduct an annual Debt Sustainability Analysis (DSA) and has successfully prepared a Medium Term Debt Management Strategy (MTDS), 2012-2015 which is being implemented. One of the key objectives of (MTDS) is to achieve optimal composition of external and domestic debt structure and to ensure low cost of government debt consistent with a prudent level of risk.
Given the impact DMO has continued to make on our economic landscape, it is safe to posit that the highlighted plethora of initiatives have been pivotal in strengthening the capacity and tenacity of our socio-economic fabric to withstand the impact of global economic meltdown. The centrality of the private sector as the main driver of the national economy is not lost on DMO under Dr. Abraham Nwankwo as it has continued to roll out many private sector support initiatives.
It has consistently promoted policies to encourage the creation of opportunities for private sector access to long term capital in both domestic and international capital markets in order to sustain and expand their businesses. Determined to facilitate access to the International Capital Market for Nigerian corporate players, DMO issued USD 500 million Sovereign Eurobond in 2011 and followed it up with a whopping USD 1 billion dual-tranche Eurobonds in July 2013; thus creating benchmarks for corporate borrowers. In 2014, DMO issued FGN Bonds in Global Depository Note (GDN) format for the first time aimed at diversifying the investor base and attract foreign investors to the domestic securities Market.
As a result of strong leadership and profound impact, the DMO under the present leadership has continued to make to ensure prudent management of resources and the adoption of sound public debt management practices at all levels of governance, states across the nation are beginning to feel the positive impact of its activities. Having successfully demonstrated its determination to ensure a paradigm shift in government business by developing a template for the establishment of Debt Management Departments (DMDs) which include outline of the legal institutional human resource framework, all the 36 States including the federal capital territory (FCT) have established Debt Management Departments (DMDs) in conjunction with the agency.
As a result of the creation of domestic debt data bases for the states and FCT by DMO, Debt Data Reconstruction exercises have been conducted in all the 36 states and the FCT. This programme assists states with the compilation, recording, analyzing and reporting of debt data. This has led to the institutionalization of a framework for the periodic rendition of the Domestic Debt Data by the states and FCT to the DMO.
With these remarkable achievements under its belt and given its relentless quest for excellence, DMO has played a pivotal role in managing and restructuring the debt of cash strapped states in the country as a result of their failure to meet their financial obligations. Following the announcement of a bailout package for the states by president Buhari, 22 states applied to DMO for their debts to be re-structured into Federal Government of Nigeria Bonds. Whereupon, DMO has successfully concluded the restructuring of N322.788 billion short term commercial bank debts of 11 states out of the 22 states to long term domestic bond at 14.83 percent yield in 20 years. Fourteen banks were involved in the phase 1 of the state’s debt restructuring exercise involving 11 States. These successful restructuring was effected using a re-opening of the FGN Bond issued on July 18, 2014 which will mature on July 18, 2034.
As the chief visioner and the mastermind driving the knowledge based revolution at the Debt Management Office, Abraham Nwankwo has put in place a framework that ensures continuous capacity building for staff. Through several workshops and special training for staff across board, he has consistently repositioned the agency for greater productivity pursuant to the realization of its statutory mandate. Debt sustainability, analysis training, sensitization workshops and training programmes aimed at achieving accurate, reliable and timely domestic debt data submissions have been conducted for relevant States, Ministries, Departments and Agencies (MDAs) by DMO.
As a result of the intensification of sensitization of relevant stakeholders including banks and other regulatory organs responsible for controlling borrowing by states, banks and other regulatory authorities now revert to the Federal Ministry of Finance before granting loans or facilities to states. The giant strides and remarkable progress recorded by DMO under the guidance of Abraham Nwankwo has not gone unnoticed by major players within the African continent and beyond.
Under the present management, DMO has transformed from being a user of technical assistance to being a provider to some nations across Africa as the leadership of these nations in recognition of DMO’s technical competence now seek to expand on areas of cooperation. So far, four African countries including Uganda, Sudan, Zambia and Zimbabwe have benefited from DMO’s technical competence. Predictably, the grant strides recorded by it have won for it plaudits, recognitions and awards both within and outside the shores of this country. In 2014, it was awarded the prestigious Europe, the Middle East and Africa (EMEA) Finance Award for the Best Sovereign Bond in Africa in 2013, for the US$ 1 billion Eurobonds which was successfully issued by Nigeria in July, 2013.
Although challenges and constraints remain which include the increasing cost of domestic borrowing, non-existence of a sinking fund for redeeming maturing obligations due to budgetary constraints, DMO has recorded string of achievements which has transformed it into a well-respected institution in Nigeria and beyond.
Oke, a financial analysts is based in Lagos.
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Business

VP Shettima insists tax reforms will improve lives and not impoverish Nigerians

Published

1 week ago

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March 5, 2026

By

Modupe ASUDO
Vice President Kashim Shettima, on Wednesday in Abuja, said the implementation of new tax reforms will eliminate the burden of multiple levies and charges on small businesses and low-income earners in Nigeria, thereby helping to reduce poverty.
Shettima noted that the planning and implementation of the tax reforms were carefully designed to improve livelihoods, contrary to the claims of political detractors.
The Vice President spoke on behalf of President Bola Tinubu at the interfaith breaking of fast for Ramadan and Lent held at the State House. Attendees included members of the Federal Executive Council, the Central Bank governor, special advisers, senior special assistants and heads of agencies and parastatals.

Nigerisa’s Vice President Kashim Shettima

Shettima urged them all to remain champions of the government’s reforms.
He said the government is genuinely concerned about Nigerians’ plight and is releasing policy instruments to lift many out of poverty without adding to their burdens.
“The same people who are shouting hoarse that the tax reform is meant to pulverise further and pauperise the poor are far from the truth, but we have to go out and tell the truth to the people.
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“We have to educate them. We have to mount the pulpits and take our government to the Nigerian people and tell them the truth,” he said.
Shettima highlighted some of the gains of the economic reforms, including an increase in the nation’s foreign exchange reserves, streamlining of the exchange rates and the removal of a subsidy that had favoured only a few for many years.
He said President Tinubu should be commended for the courage to address the issues that past administrations avoided.
The Vice President explained that the removal of the fuel subsidy was not mentioned in the President’s 2023 inaugural speech. Still, the President had to announce it, knowing that the system was draining the economy of resources for development.
“Three years down the road, the economy has bounced back,’’ he added.
“On behalf of the President, I want to thank you all for comradeship, support and partnership,’’ he stated.
Shettima advised government officials to be more active in sharing facts about the administration’s achievements and to be ready to counter falsehoods propagated by the opposition parties.
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Business

AfCFTA $3.4 Trillion Market in Focus as NCDMB, Others move to deepen Intra-Africa Trade

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4 weeks ago

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February 16, 2026

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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.

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Business

AfCTA: NCDMB provides roadmap to $3.4tn continental market

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4 weeks ago

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February 16, 2026

By

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.

NCDMB Charges Indigenous Companies On Compliance As Nigerian Content Level Hits 54% In 2022Entitled ‘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.

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