Abuja — Speaker of the House of Representatives, Hon. Tajudeen Abbas, yesterday, clarified his earlier comments on Nigeria’s N149.39 trillion debt, stressing President Bola Tinubu was committed to ensuring that borrowing remains responsible and tied to productive investments.
Also, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, expressed optimism about the country’s fiscal outlook.
Both officials delivered their remarks at the 11th Annual Conference and General Assembly of the West Africa Association of Public Accounts Committees (WAAPAC), hosted by Nigeria’s House Public Accounts Committee, under the theme: “Strengthening Parliamentary Oversight of Public Debt.”
The National Assembly recently approved President Bola Tinubu’s ambitious external borrowing plan for 2025-2026, which included $21.19 billion in foreign loans, €4 billion, ¥15 billion, a $65 million grant, and about N757 billion in domestic borrowing.
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This borrowing plan, endorsed by both the House and Senate Committees on Local and Foreign Debt, was also made up of a proposal to raise an additional $2 billion through a foreign-currency bond issued in the domestic market.
Abbas noted that public debt, if well utilised, could engender growth and development in any country.
He said Nigeria could leverage responsible borrowing for sustainable development as demonstrated by the Tinubu administration.
“Indeed, public debt, when managed prudently, can be a tool for growth and prosperity. Yet, when left unchecked, it becomes a burden that erodes economic stability and threatens the welfare of future generations,” Speaker Abbas noted.
A statement by the Special Adviser on Media and Publicity to the Speaker, Musa Abdullahi Krishi, noted that the Speaker’s remarks were not a call to reject borrowing outright but reflected a responsible approach to debt management–one that ensures that borrowing translates into real value for Nigerians.
This, the statement noted, aligns squarely with President Bola Ahmed Tinubu’s Renewed Hope Agenda, which prioritises fiscal discipline, prudent resource management, and channeling funds into critical areas like infrastructure, education, green energy, and social welfare.
Last week, Tinubu announced during a meeting with the stakeholders of The Buhari Organization in Abuja, Nigeria, had met its revenue target for 2025 ahead of schedule and would no longer rely on borrowing to fund its budget.
The President also said his administration’s non-oil revenue drive had yielded enough to meet this year’s projections by August, reducing Nigeria’s dependence on external loans.
At the WAAPAC event, the Speaker emphasised the “need for stronger oversight, transparent borrowing practices, and a collective resolve to ensure that tangible economic and social returns match every naira borrowed.”
He added, “When we examine the sources of Africa’s external financing, it becomes clear that the weight of debt on our continent is shaped by whom we borrow from and on what terms. Today, Western private lenders hold about 35 percent of Africa’s government debt through banks, asset managers, and oil traders.
“Multilateral institutions, such as the World Bank and the IMF, account for another 39 percent, while bilateral loans from other governments comprise 13 percent. Chinese creditors, despite much of the public debate, hold only 12 percent.
“To place this in sharper focus, in 2019, bondholders alone represented 27 percent of Africa’s external debt, making them the single largest creditor group, ahead of China at 13 percent.”
Speaker Abbas stated that if Africa was to grow stronger, the countries must not only negotiate fairer terms of borrowing but also rethink their dependence on external finance.
“We must channel more energy into mobilising domestic resources, fostering intra-African trade, and creating financial instruments that serve the continent’s own development priorities. Only then can we move from vulnerability to resilience, and from dependency to true economic sovereignty,” he said.
The Speaker stated that the conference could not have come at a more opportune time, “as our nations face mounting fiscal pressures that demand stronger legislative oversight of public debt and borrowing.”
He also noted that the theme “speaks directly to the urgency of safeguarding our financial future,” stressing that it “goes to the very heart of democratic governance and sustainable development.”
Speaker Abbas said, “Therefore, oversight of public debt is a democratic duty and a moral responsibility of the legislature. Our parliaments must ensure that every borrowing decision reflects prudence, transparency, and the collective interest of our citizens.
While noting that the implications of this debt structure are far-reaching, the Speaker said a “significant share of our national revenues is tied to debt servicing rather than being invested in the things our people need most: roads, schools, hospitals, and innovation.”
He added that the high cost of commercial loans, coupled with the burden of repayment in foreign currencies, leaves many African economies vulnerable to market shocks. “This narrows fiscal space, constrains domestic policy choices, and slows the pace of sustainable development,” he said.
However, in his presentation, Edun presented a more optimistic assessment, saying Nigeria’s economy was recovering under the reform agenda of President Bola Tinubu.
Edun noted that in 2024, the ratio of debt service-to-government revenue had declined to about 60 per cent, while the debt-to-GDP ratio had fallen to 38.8 per cent, which he described as acceptable by global standards.
He also said government revenues rose by 34.7 per cent in the first half of 2025, showing signs of fiscal improvement.
Edun acknowledged Nigeria’s shared struggles with other West African nations, including high debt service costs, limited revenue streams, and increasing pressure on public spending.
He argued that Nigeria was making a positive turnaround, with reforms boosting investor confidence, reducing fuel import expenses, enhancing energy independence, and encouraging local value addition.
He credited these gains to difficult but necessary reforms, including the removal of fuel subsidies, exchange rate liberalisation, and a broad tax reform initiative aimed at improving compliance and gradually increasing the tax-to-GDP ratio.
According to Edun, these reforms are laying the groundwork for a stable macroeconomic climate that encourages private sector investment, which constitutes around 90 per cent of the nation’s economy.
He stressed that the government’s borrowing was now targeted at specific projects that generate returns, adding that the administration was avoiding inflationary practices like excessive money-printing or unsustainable financing methods.
Edun also pointed to global challenges such as declining development aid, shrinking global trade, and higher international interest rates, which he said complicate fiscal management in developing nations.
He argued that these global constraints make it even more critical for African countries to embrace reforms, digital innovation, and technology-driven revenue systems to boost domestic income.
The minister maintained that parliamentary scrutiny was vital for upholding fiscal responsibility and further urged lawmakers to actively hold the executive accountable for borrowing and spending decisions, asserting that transparency and accountability must form the backbone of fiscal policy.
“A credible fiscal plan isn’t just an executive responsibility, it requires strong collaboration and oversight, especially from finance and public accounts committees like yours.”
He described Nigeria’s current fiscal path as a key inflection point, where recent reforms are paving the way for long-term stability, global competitiveness, and inclusive development.
Edun, however, concluded by stressing the importance of responsible borrowing, clear reporting, and vigilant legislative oversight to secure the country’s financial future.
Earlier, at the conference yesterday, Abbas, who was represented by House Leader Prof. Julius Ihonvbere, stated that as of the first quarter of 2025, Nigeria’s total public debt stood at N149.39 trillion (about $97 billion), a steep rise from N121.7 trillion in the prior year.
Abbas raised concern about Nigeria’s escalating debt, stating that it reached N149.39 trillion (approximately $97 billion) in the first quarter of 2025, from N121.7 trillion the previous year.
Abbas cautioned that Nigeria’s debt-to-GDP ratio had hit 52 per cent, exceeding the legal ceiling of 40 per cent, and called on parliaments throughout West Africa to intensify their scrutiny of government borrowing to protect their citizens’ futures.
He noted that the debt-to-GDP ratio had soared to 52 per cent, well above the 40 per cent legal threshold.
He warned that the debt escalation had pushed Nigeria beyond its legal borrowing limits and placed considerable strain on its fiscal stability.
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Abbas said the trend underscored the pressing need for enhanced parliamentary oversight, improved transparency in the borrowing process, and a unified effort to ensure every borrowed naira delivers measurable economic and social benefits.
He further warned that Africa was facing a continent-wide debt crisis, with many nations spending more on debt servicing than on essential sectors like healthcare.
Highlighting Africa’s debt composition, Abbas said that 35 percent was owed to private Western lenders, 39 percent to global financial institutions, such as the International Monetary Fund (IMF) and the World Bank, 13 percent to bilateral partners, and 12 percent to China.
The Speaker stressed that loans should be channeled into sectors like infrastructure, healthcare, education, and industries that generate employment, warning against irresponsible borrowing that fuels corruption or unproductive consumption.
He added that oversight efforts must involve the public, suggesting that major loan proposals should be open to public hearings and that debt reports be simplified and made publicly accessible to ensure transparency and citizen awareness.
The President of the Senate, Godswill Akpabio, also called for stronger legal frameworks across West Africa to empower finance and public accounts committees, ensuring better debt transparency and sustainability.
Represented by Senator Osita Izunaso, Akpabio warned that unchecked borrowing could endanger citizens’ futures and weaken democratic institutions throughout the region.
He argued that sound debt management, underpinned by rigorous oversight, could be a powerful tool to finance infrastructure, spur growth, and support sustainable development.
The House Public Accounts Committee Chairman, Hon. Bamidele Salam, revealed that his committee had recovered more than N200 billion in lost government revenue over the past year.
Salam said these recoveries were part of ongoing reforms to improve financial accountability in Nigeria.
He noted that this WAAPAC meeting, which Nigeria is hosting for the first time since the group’s founding in 2009, is particularly timely in light of Africa’s escalating debt crisis.