Adetilewa Adebajo argued that the debt management agency can be sued for contravening both the Central Bank of Nigeria (CBN) Act and the Fiscal Responsibility Act. godwinemefiele cbn
Report: Nigeria Debt Management Office's $48.8 Billion Debt Contravenes the Law Says Expert
The Nigerian Debt Management Office contravened the law when its borrowings exceeded the set limit which is equivalent to $2.2 billion, Adetilewa Adebajo, an international financial markets expert has reportedly said. Adebajo also suggested that the Central Bank of Nigeria governor Godwin Emefiele should be probed for his role in allowing the DMO’s borrowings to balloon to more than $48.8 billion.
Although the DMO is allowed to borrow domestically without a mandate from the country’s National Assembly, the agency’s borrowings which now exceed $48.8 billion mean it has violated the law. “The DMO is not mandated to go to the National Assembly before they borrow abroad, but the Ways and Means give them the right. But it is not supposed to exceed N1 trillion. It is at N22 trillion [$48.8 billion], which indicates that they have exceeded the limit. This is where the illegality comes in,” Adebajo reportedly said.quotes Adebajo who said the Nigerian central bank governor Godwin Emefiele should be probed for his role in allowing the DMO to exceed its borrowing limits.
“They want to send the securitisation proposal to the ways and means committee of the National Assembly, under which law? There is no law in Nigeria that states that you take ways and means financing to the National Assembly for approval,” the expert reportedly said.Tags in this story
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