State Debt Management in Nigeria : Challenges and Lessons Learned
Drawing on the results of recent state-level debt management performance assessments (SN DeMPAs) in seven Nigerian states and the Federal Capital Territory, the paper highlights key institutional and capacity challenges in state debt management in...
| Main Authors: | , , , |
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| Format: | Working Paper |
| Language: | English |
| Published: |
World Bank, Washington, DC
2020
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/855871587999761270/State-Debt-Management-in-Nigeria-Challenges-and-Lessons-Learned http://hdl.handle.net/10986/33656 |
| Summary: | Drawing on the results of recent
state-level debt management performance assessments (SN
DeMPAs) in seven Nigerian states and the Federal Capital
Territory, the paper highlights key institutional and
capacity challenges in state debt management in the context
of the Nigerian fiscal federalism system. It also provides a
comparison of subnational debt management practices of
selected Nigerian and Indian states. The analysis highlights
the important role of the central government in the
successful implementation of subnational debt management
functions within fiscally decentralized system, in
particular by: (i) establishing a sound legal framework for
subnational borrowing and defining key parameters for state
indebtedness; (ii) establishing, standardizing, and
monitoring state-level debt-management procedures, systems,
and institutions; and (iii) building the capacity of
subnational authorities along the entire cycle of debt
management, including for debt management strategy
formulation, borrowing plans, debt contracting, recording
and reporting. While this paper focuses on state-level debt
management in Nigeria, it is designed to contribute to the
ongoing dialogue on international sound practices for
subnational debt management and implementation of fiscal
decentralization in developing countries. |
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