The issue of debt sustainability in a country like Nigeria should be approached with flexibility, Dr Abraham Nwankwo, Director-General, Debt Management Office, has said.

Nwankwo made the declaration on Monday in Abuja at the 2011 National Debt Sustainability Analysis (NDSA) meeting.

“The issue of debt sustainability analysis for a country like ours is one that should be approached with a good deal of flexibility; a good deal of innovativeness and a good deal of creativity.

“Given the nature of our country; given the nature of the economy, you will appreciate that it is very difficult to carry out the Debt Sustainability Analysis using the normal framework and simply draw a conclusion.’’

Nwankwo said that the country’s economic problem would be solved technically and responsibly.

He noted that the nation was at the limit of its borrowing level, though it had not reached 20 per cent in the ladder of economic development and in terms of developing its resources and capacity.

He said that the question of how to balance the task of borrowing in order to maintain sustainability and escape from the low level operation needed to be answered.

“This means that debt sustainability analysts need to think of very creative, innovative and sustainable approaches to dealing with these tensions,’’ he said.

He added that with the outcome of the 2011 elections, Nigerians expected progressive change in the next couple of years.

He said that Nigeria needed to close the old infrastructure deficit, noting it remained a challenge to close the gap without borrowing.

Nwankwo noted that there must be expansion in government’s contingent liabilities, adding that public debt management was coming nearer to classical risk assets management and investment.

He said that government should protect itself in counter grantees as it strove to support the private sector in the development.

He challenged participants to strive to ensure that the 2011 NSDA was different in terms of qualitative recommendations, which must be in consonances with the plans of government.

Earlier, Mr James Oleka, DMO’s Head, Department of Policy Strategy, Risk Management, said that the meeting would review the country’s account in the last three years and assess the database and risk assessment in Nigeria.

Oleka said the meeting would also look at issues of budget deficit, domestic debt profile and external debt management, among other issues.

Participants at the meeting were drawn from the DMO, the CBN, the Federal Ministry of Finance, the National Planning Commission and the Budget Office of the Federation.