DMO Cautions States on Rising Debt, Urges Focus on Tax Reforms and PPPs
The Debt Management Office (DMO) has advised state governments to reduce reliance on borrowing for infrastructure projects and instead prioritise Public-Private Partnerships (PPPs) and stronger tax revenue mobilisation. Speaking at a World Bank-supported workshop under the States Action on Business Enabling Reforms Programme in Lagos, DMO Director-General Patience Oniha warned that Nigeria must avoid slipping back into a debt crisis similar to what it faced before its 2005 debt relief programme. She stressed that borrowing should only be a last resort, adding that governments at all levels must ensure that any loans taken are prudently utilised and sustainable. “Borrowing should not be the major source of funding. Revenues, especially tax revenues, must be significantly improved. Efficient tax collection ensures more resources for health, education, and infrastructure without raising tax rates,” Oniha said. According to her, PPPs present a more viable […]