In a significant move to overhaul its public debt management system, Nigeria has adopted new software developed by the Commonwealth Secretariat aimed at transforming the nation’s handling of its substantial $114.35 billion debt portfolio.
Snober Abbasi, the Senior Communications Officer at the Communications Division of the Commonwealth Secretariat, disclosed this development in a statement on Monday.
Workshop for Nigerian debt managers
At the heart of this initiative is the deployment of the Commonwealth Meridian software, a decision made following the Nigerian government’s request for support in upgrading its debt management capabilities.
In response, the Commonwealth Secretariat facilitated a comprehensive two-week training workshop for 15 Nigerian debt managers at its London headquarters.
This training was not only about transitioning to the new software but also aimed at equipping the participants with advanced skills in recording, analysing, and managing debt across various dimensions.
The statement read:
- “A powerful software developed by the Commonwealth Secretariat is being deployed in Nigeria to transform how the country manages its public debt portfolio of US $114.35 billion while enhancing transparency.
- “At the request of the Government of Nigeria, the Commonwealth Secretariat hosted a two-week training workshop for 15 Nigerian debt managers at its headquarters in London this month.
- “During the workshop, participants received hands-on training on getting their debt databases ready for seamless migration to the new software, known as Commonwealth Meridian, and learned essential skills for recording, analysing, and managing various types of debt using the advanced tool.”
Software to drive timely debt service payments
During the opening of the workshop on February 5, 2024, Dr Cyprian T. Heen, acting High Commissioner of Nigeria to the United Kingdom, emphasised the critical role of Meridian software in fostering sound debt management practices.
He highlighted the importance of monitoring debt liabilities to mitigate escalating costs and risks, thereby ensuring funds are available for sustainable development projects. Meridian, as Heen pointed out, is instrumental in allowing for the accurate recording of debt and facilitating timely debt service payments, which are essential for effective government financial management.
Heen said:
- “Meridian allows borrowers to record their debt accurately and comprehensively across the full range of debt management transactions and operations.
- “In turn, this facilitates accurate and timely debt service payment to creditors while allowing governments to monitor their liabilities.”
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Meridian, which was launched in 2019, is set to replace the Commonwealth Secretariat: Debt Recording and Management System (CS-DRMS), which has been instrumental in Nigeria’s public debt management since the 1990s.
The new software offers real-time access to debt data, enhancing the ability of managers to monitor liabilities and make informed decisions. This upgrade is pivotal in meeting national financing needs efficiently and at an acceptable risk level.
The commitment of Nigeria to improve its debt management system was further echoed by Maraizu Nwankwo, Director of the Debt Recording and Settlement Department at Nigeria’s Debt Management Office (DMO), who welcomed the initiative.
According to Nwankwo, Meridian addresses the challenges previously faced with CS-DRMS and supports the office in catering to the growing demand for public debt data from various stakeholders.
Nwankwo said:
- “Meridian would help to address the challenges encountered by our debt officials in the use of CS-DRMS and support the Debt Management Office in meeting the increasing demand for public debt data in various forms by the stakeholders and users.”
This strategic move, supported by the Commonwealth’s debt management program, which includes advocacy and policy advice on formulating debt strategies, positions Nigeria for better financial management and development planning.
With Meridian now in use in 39 Commonwealth countries, Nigeria joins a global community committed to enhancing debt management practices for sustainable growth.
