Nigeria Debt Management Office's $48.8 billion debt, according to an expert, is illegal. Expert in international financial markets Adetilewa Adebajo claims that Nigeria's Debt Management Office (DMO) broke the law when its borrowings exceeded $2.2 billion (1 trillion nairas).
Adebajo reportedly made the comments during an interview with Arise TV. He asserted that the DMO can be held liable for violating both the Fiscal Responsibility Act and the Central Bank of Nigeria (CBN) Act.
The DMO has broken the law despite being permitted to borrow money on the domestic market without the approval of the National Assembly of the nation due to its current borrowings, which total more than $48.8 billion.
Before borrowing overseas, the DMO is not required to consult the National Assembly, However, it must not go over N1 trillion.
The fact that it has reached N22 trillion (US$48.8 billion) shows that they have gone over the limit. This is where the illegality enters," allegedly remarked Adebajo.
Seasoned slates Planned Securitization of Nigeria's Debt A different source cites Adebajo as saying that Godwin Emefiele, the governor of Nigeria's central bank, should be investigated for his participation in enabling the DMO to exceed its borrowing restrictions.
Adebajo stated that the attempt by the Nigerian government to securitize its debt for 40 years would be against the law. "Under what law do they intend to submit the securitization plan to the National Assembly's ways and means committee? No legislation in Nigeria mandates that you use shortcuts.
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