The organizational structure of DMA follows the organogram below
Our Missions
Rely on well-motivated professional workforce and modern technology to provide efficient service, to provide efficient debt portfolio Management for the state in line with best practice to contribute to the state development.
Our Vision
Manage adamawa state debts as an asset for growth and development and poverty reduction.
Service
Institutional Arrangement
The DMA's organizaional structure broadly follow the
Office configuration to reflect global best practice.
The Font Office Departments is the - portfolio Management Department(PDM)
The Middle Office Department - Policy, Strategy and Risk Management(PSRM)
While the Back Office Departments is the - Debt Recording & Settlement(DRS)
DEBT SUSTAINABILITY ANALYSIS (DSA)
The DSA was carried out to ascertain the liquidity and Solvency position of the State Government debt status.
The State liquidity ratio (Debt service Sustainability) of the debt sustainability analysis determines the capacity of the Government to meet up with its monthly debt service obligations as at when due without recourse to other exceptional financing. The liquidity ratio followed the threshold of 40% and is not to be exceeded.
While the Solvency ratio (Debt Stock Sustainability) examines the capacity of the State Government to meet up with its future debt stock obligations. The Solvency ratio has the threshold of 250%.
Both the 40% and the 250% are standard thresholds provided by World Bank Country Policy and Institutional Assessment (CPIA). Those thresholds are used by the federal Debt Management Office in debt sustainability analysis and by extension, the DMAs.
Debt Service Sustainability Result (DSSR)as at December, 2023
Liquidity Ratio
40%
DSSR
28.9%
Debt Stock Sustainability Result (DSSR) as at December, 2023(DSA)
Solvency Ratio
250%
DSSR
245%
NOTE:
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Note
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The Debt Service Sustainability Result shows that the State liquidity position was at 28.9% as at 31st December 2019 which was less than the 40% liquidity threshold. That shows the State Government has the capacity to meet up with its debt service obligations as at when due on its domestic and external debts.
On the same vain, in as much as the State is sustainable at present, the State should also exercise more caution not to breach the threshold of 40% by avoiding loans with exorbitant interest rate. Loans with higher interest rates lead to higher monthly debt service obligations which are not healthy for the State in terms of taking care of other monthly statutory obligations like payment of salaries and other civil servants claims, pension and gratuity and contractors’ liabilities.
On the other hand, Debt Stock Sustainability Result as at 31st December 2019 has approached 208% as against 250% Solvency threshold.
Globally, attention has been shift from looking at the quantum of the loan debts to how effective are those debts been serviced. DMO has made that clear to all DMAs at a Sensitization Workshop on Sub-National Debt Management for Top Policy Makers in the 36 States of the Federation in Kano State 2018.
Considering the acute revenue from the monthly FAAC allocation to the State Government and the State low IGR, the State Government cannot finance its budget without going for loans.
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Debt Management Committee (DMC)
By virtue of the DMA Act, DMC is mandated to approve debt policies taking into consideration the State development objectives and macroeconomic policies; formulating debt-ceiling policy and approving debt strategies; formulating and reviewing the legal, institutional, organizational responsibilities as well as rules and procedures for DMA. DMC to also ensure that recording, analysis, control and all operations relating to debt management are perform by qualify personnel – which involve recruiting, motivation, and training DMA staff as well as equipping the Agency to secure a conducive work environment for its staff. More so, DMC is to ensure transparent and enforceable sound policies for new borrowing, comprehensive debt management strategies that pay attention to medium-to-long term implication of State economic policies and the resulting implications of debt sustainability and advise the Commissioner of Finance accordingly.
1
Portfolio Management Department
This department is known as the front office – it shouldered with the responsibilities of mobilizing funding for the State government within the provision of the existing law and policies; negotiate loans/subsidiary agreements, participate in DMC meetings, liaise with creditors and stakeholders on review missions as well as comply with conditions preceding effectiveness.
2
Policy, Strategy and Risk Management Department
This is known as the middle office of the Agency whose key functions is debt analysis and strategy formulation. It also monitors compliance of existing borrowing guidelines by State MDAs and Local government.
3
Debt Recording and Settlement Department
This is called the back office of the Agency. The main functions of this department are information or data management and payments. It maintain debt database and made quarterly report to DMO and other State MDAs as requested.
