"The Debt Management Office has established itself as an exemplary government agency that is worthy of emulation by other government agencies." (President Obasanjo wrote in his letter of commendation to the DMO, May 2006).
In 1998, with Nigeria approaching its first civilian elections in 15 years, few people would have thought that by April 2006 it would have successfully negotiated a US$18 billion debt cancellation. Throughout this period Crown Agents was instrumental in shaping a new Debt Management Office's organisational structure, developing internal capacity and establishing procedures supported by a new legal and regulatory environment. Our partnership continues.
Our first assessment was not encouraging. Some 16 departments - in the Federal Ministry of Finance and the Central Bank of Nigeria - had responsibility for different aspects of the debt portfolio. The problems were technical and institutional.
Consolidating debt management activities within one agency was driven forward by the Government of Nigeria, Crown Agents, the UK Department for International Development (DFID) and other stakeholders. This went further than creating a unit within the Ministry of Finance or Central Bank. We helped to draft legislation establishing a semi-autonomous Debt Management Office, with its own mandate and facilities. The DMO opened in September 2000.
Recruiting staff from the Ministry of Finance and the Central Bank established a core of personnel. By implementing a human resource strategy and policy including technical and managerial training, staff competencies and personal development plans, the DMO's capacity to fulfil its mandate was enhanced. Study tours to Asia and Latin America provided key staff with valuable insights, broadening staff experience and knowledge of debt management.
It was essential to build an accurate database of loans and transactions. We worked with the Commonwealth Secretariat and used its Debt Recording and Management System (CS-DRMS) to record loans, transactions and exchange rates. We then utilised this data to assess and analyse the portfolio, informing policy and strategy as Nigeria moved towards debt cancellation and long-term debt sustainability.
The DMO has been modernised and now has clearly defined and separate front, middle and back offices handling resource mobilisation, debt and risk analysis and information and payments respectively. With this organisational structure there are distinct responsibilities, clear goals and operational safeguards enabling the DMO to meet its core values of excellence, commitment, integrity, teamwork and efficiency.
In 2002, with DFID funds, we began managing the current phase of the project. Its aims are debt sustainability and to extend the framework to domestic debt and sub-national borrowing.
In November 2006 we won the British Expertise Award for Large Consultancy Firm of the Year, being recognised for our services to the DMO project. Hilary Benn (UK International Development Secretary) said 'the UK should be proud of Crown Agents in helping the Nigerian Government.'
For further information, refer to the See Also section and external links.