Contact us on+2348110000881 or enquiries@dmo@dmo.gov.ng NDIC Building(First Floor)
Debt Recording and Settlement
Overview and Functions
The Debt Recording and Settlement Department performs two core functions, which allow all other operational functions in the DMO to be carried out and these are:
- To maintain the debt database and provide information that supports the reporting and analytical work of the organisation; and
- To forecast, process and effect the servicing of debt.
The major strategic objective of the department is to create and maintain a comprehensive, reliable and efficient national and sub-national debt database, and to ensure prompt and accurate settlement of debt service obligations. Therefore, the functions comprise the administration of the full cycle of the life of a contract/instrument, from signature to full repayment.
The department is responsible for:
Registering, managing, paying and accounting of both foreign debts and securitised domestic debt;
- Registering and tracking data in such special accounts as cross-enterprise debts, contractor/supplier arrears as verified and advised by the Budget Office of the Federation, grants, private non-guaranteed debts; on-lending agreements, Sub-national domestic debts and those of their agencies;
- Maintaining records of all debt contracts, disbursements, debt restructuring and issued guarantees;
- Organizing the provision of debt information and statistics to meet the demand of other departments and external stakeholders, while ensuring accuracy and timely response to such needs;
- Conducting data validation;
- Handling the settlements of transactions, their confirmation, and the maintenance of their related financial records; and,
- Forecasting and planning debt service and debt repayment, including provisions for contingent liabilities.
The department uses the CS-DRMS (Commonwealth Secretariat Debt Recording & Management System) 2000+ Version 1.3 for public debt recording in order to attain efficiency and effectiveness in the activities of the department. This software is supported by internal controls and regular data validation to avoid discrepancies in loan transactions and to ensure a reliable database.
Departmental Structure
The department centralizes all the operations related to the registration of loans, the recording, monitoring and control of disbursements/subscriptions, the execution and management of public debt service operations, and the production of debt data. It is composed of a Director, Team Leaders for each unit and supporting officers of varying rank. The department is divided along functional lines into two sections: the Debt Recording Section and the Debt Settlement Section. The Debt Recording Section performs the debt recording and reporting function, while the Debt Settlement Section performs the payment and settlement function. Each section is divided into specialist units that perform the following functions:
1. DEBT RECORDING SECTION
2. DEBT SETTLEMENT SECTION
1. DEBT RECORDING SECTION
A. External Debt and Special Accounts Unit (ED & SAU)
The ED & SAU is primarily responsible for recording of loan details, inputting the borrowing terms, and recording the actual transactions related to external debt contracted by the Federal Government of Nigeria. Its core functions are to extract comprehensive data on external obligations from loan agreements and record and monitor them in the CS-DRMS. The unit also records and manages Private Sector External Debts, Grants, Contingent Liabilities and all other “Special” debt instruments. It is also responsible for maintaining the integrity of the external debt and special accounts database, ensuring that data is up-to date, and for generating reports for end-users.
B. Sub-National Debt Unit (SNDU)
The SNDU is primarily responsible for maintaining an accurate, comprehensive, and up-to-date database on loans borne by the state governments. It is responsible for liaising with state authorities to ensure that loan details, terms, and actual transactions are accurately captured and reported in the main debt data system, CS-DRMS.
C. Domestic Debt Unit
The DDU is primarily responsible for maintaining an accurate, comprehensive, and up-to-date securitized domestic debt database. It captures information on auctions of FGN Bonds and Treasury Bills issued by the Federal Government of Nigeria and records them in the CS-DRMS. It is also responsible for generating key domestic debt reports for internal and external stakeholders.
2. DEBT SETTLEMENT SECTION
A. Debt Settlement Unit (DSU)
The DSU is primarily responsible for forecasting future debt payments and processing actual debt service obligations. The unit also monitors and ensures that all approved obligations of the Federal Government of Nigeria have been paid in full, as and when they fall due. Among its core functions are the preparation of the annual debt service estimates for incorporation into the Federal Budget, and the reviewing and processing of creditors bills (domestic and external). It follows up on the externalisation of approved payments, reconciling debt payments that are effected together with other key agencies, namely the Central Bank of Nigeria and the Office of the Accountant General of the Federation, and monitoring the redemption of FGN Bonds and other government securities.
