Garba Mohammed
Speaker of the House of Representatives, Abbas Tajudeen, has raised alarm over Nigeria’s escalating debt profile, warning that it has breached statutory thresholds and now poses a grave threat to fiscal sustainability.
Speaking on Monday at the opening of the 11th Annual Conference and General Assembly of the West Africa Association of Public Accounts Committees (WAAPAC), held at the National Assembly in Abuja, Abbas said Nigeria’s debt situation had reached “a critical point” requiring urgent reforms in borrowing practices and stronger parliamentary oversight.
“As at the first quarter of 2025, Nigeria’s total public debt stood at N149.39 trillion (about US$97 billion). This marks a sharp rise from N121.7 trillion the previous year. Even more troubling is the debt-to-GDP ratio, which now stands at roughly 52 percent, far above the statutory ceiling of 40 percent set by our laws,” he stated.
The Speaker described the breach as a clear signal of strain on the nation’s fiscal health, stressing the need for greater transparency, accountability, and oversight in loan acquisition.
He warned that several African countries were already in “dangerous debt-to-GDP territories,” where governments spend more on servicing loans than on healthcare and other essential services.
“This is not just a budgetary concern but a structural crisis that demands urgent parliamentary attention and coordinated reform,” Abbas warned.
To address these fiscal risks, Abbas revealed plans for Nigeria to spearhead the creation of a West African Parliamentary Debt Oversight Framework under WAAPAC.
The framework, he explained, would:
Harmonise debt reporting across the region,
Set transparency standards, and
Equip parliaments with timely data to scrutinise borrowing.
He also announced a regional capacity-building programme for Public Accounts and Finance Committees, aimed at strengthening skills in debt sustainability analysis and fiscal risk management.
Abbas stressed that Nigeria must focus on productive borrowing, not reckless accumulation of debt.
“Borrowing should support infrastructure, health, education, and industries that create jobs and reduce poverty. Reckless debt that fuels consumption or corruption must be exposed and rejected,” he declared.
Reiterating the 10th House’s commitment to accountability, Abbas noted that under the legislature’s Open Parliament policy, all major borrowing proposals would be subjected to public hearings, while simplified debt reports would be made available to citizens.
The WAAPAC conference, which brings together parliamentarians, development partners, and financial experts, is focused on the theme:
“Strengthening Parliamentary Oversight of Public Debt: The Role of Finance and Public Accounts Committees.”
Abbas urged delegates to engage with dedication, saying the resolutions would go a long way in strengthening fiscal responsibility and accountability across the continent.