From KABIRU YUSUF,Abuja

He therefore challenged the operators of the sector in Nigeria to recommit themselves to the pursuit of prudence, transparency, and sincerity in their dealings with the three tiers of government.
According to the President: “It is on record that most of the domestic debts that have virtually crippled some of the states were orchestrated, abetted, and operationalized by some of our banks through the abuse of the ISPO system.”
The President stated this at the inauguration of the Supervisory Board of the Debt Management Office in his office, adding that government is hoping that the new lease of life which the banking reforms have engendered in the sector will reflect in greater prudence in the rational interaction between the banks and the local, state, and the federal governments.
He pointed out that Nigeria has witnessed a regime of far-reaching economic, administrative and social reforms in the past eight years more than at any other time in its 47-year post-independence history.
These reform efforts, he said, have resulted in some major achievements, chief among which was the historic debt relief which the nation won from its major creditors. ‘’The ministry of finance and the Debt Management Office (DMO) can justifiably lay claim to being the architects of this momentous feat,’’ he noted.
In the midst of the country’s euphoria, he added, government has not lost sight of the fact that the post-debt relief period is a delicate one for a developing economy, pointing out that there is the risk of relapsing into debt unsustainability as a result of unguarded borrowing.
The President further stated that with the nation’s exit from both the London and Paris Club debts overhang, the DMO is faced with new challenges, principal amongst which is managing domestic debt at both the federal and state levels.
It is in recognition of the need to further strengthen the DMO in the light of these challenges, he added, that its Supervisory Board was being inaugurated this morning. “This is to ensure the effective and efficient implementation of policies, strategies and procedures aimed at achieving continuous debt sustainability and macroeconomic stability,’’ he said.
Yar’adua explained that the Supervisory Board, a statutory creation of the Act establishing DMO, is charged with responsibility for the approval of policies, strategies and procedures which are to be adopted by the DMO for the achievement of its objectives.
The Board is also among other responsibilities, he pointed out, expected to review the economic and political impact of both domestic and external debt management strategies.
He said: “Given the composition of the Board, I am confident that these are worthy Nigerians who have the requisite creative and productive capacity to effectively drive the DMO in the efficient discharge of its statutory obligations.”
The President who congratulated the entire membership of the Board, said, ‘’significantly, this is the pioneer Board as the DMO Supervisory Board is being inaugurated for the first time since the DMO's establishment in 2000. ‘’
He urged members of the board to take very seriously, their onerous responsibility of guiding the management of the DMO in developing appropriate mechanisms for prudent, effective, efficient and sustainable solutions to our domestic and sub-­national debt management.
As he formally inaugurated the Supervisory Board, the president said the board members can be assured of government unstinted support as they face up to this vital national assignment.