Nigeria will assist South Sudan in managing its huge debt profile and
develop its bonds market, Dr Abraham Nwankwo, Director-General, Debt
Management Officer (DMO), has said. Nwankwo, speaking on Tuesday when he
received a South Sudan delegation on a study tour, stressed the need
for cooperation among African countries.
He also assured the delegation that Nigeria would assist South Sudan
to set up its own Debt Management Office. “This visit has opened a new
door for economic cooperation between Nigeria and Sudan, to share our
knowledge, experience and also to learn from each other. “We are happy
that rather than going to European or industralised Asian countries, you
came to Nigeria. This shows the spirit of African solidarity,’’ he
said.
Mr Philip Boldit, a member of the delegation and Director-General,
Directorate of Macroeconomic Planning, South Sudan, said currently there
were no records to establish the debt of his country. “The debt profile
of South Sudan was incurred locally through the commercial banks and
the Central Bank. This is because we could not borrow internationally
due to the insecurity in the country.
“In fact, most of the borrowings were through the Central Bank. The
Central Bank is supposed to be the last resort but we abused it. “This
resulted in the apex bank printing more money, which meant more money in
the market and it caused the devaluation of our currency. “So, we have a
very high inflation which can only be brought down when we devise ways
to manage our debts properly,’’ he said.
Boldit expressed optimism on the outcome of the study, adding that
South Sudan could share from Nigeria’s experience. “We have high
expectations. Nigeria and South Sudan have a lot of similarities. We
have oil and insecurity as well. “Prior to the discovery of oil,
agriculture was the back bone of our economy. But for no reason, we
neglected that. Now that oil prices have dropped drastically we regret
that decision.
“Nigeria has a lot of experience in this regard and because of these
similarities, we hope to apply the Nigerian way to help us manage our
debt,’’ he said. The delegation will visit the Central Bank of Nigeria
and Ministry of Finance.
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