Debt has jumped to ₦149.39 trillion—way past the legal limit
Speaker of the House of Representatives, Tajudeen Abbas, has raised serious concerns over Nigeria’s rapidly growing debt, calling it “unsustainable” and a threat to future generations.
Speaking at a major regional finance conference in Abuja, Abbas revealed that Nigeria’s public debt hit a staggering ₦149.39 trillion (around $97 billion) in Q1 of 2025—up from ₦121.7 trillion the previous year.
But it’s not just the size of the debt that’s alarming—it’s how far we’ve gone past our own limits. “Our debt-to-GDP ratio now stands at about 52%, well above the 40% ceiling allowed by law,” Abbas warned.
Young Nigerians could bear the brunt
Abbas made it clear that if current trends continue, the country could be locking future generations into a cycle of debt repayment with little to show for it. “Oversight of public debt is not just a democratic duty—it’s a moral responsibility,” he said.
He emphasized that parliament must play a stronger role in holding the government accountable for how and why it borrows, adding that major borrowing proposals should undergo public hearings and be fully transparent.
This isn’t just a Nigerian problem—it’s continental
Abbas also pointed out that the debt crisis is not limited to Nigeria. Africa’s total public debt hit $1.8 trillion by 2022, and countries like Sudan, Angola, and Ghana are already in deep debt-to-GDP territory.
He said the problem stems in part from expensive commercial loans, especially those from Western private lenders, who now hold about 35% of Africa’s government debt. By contrast, Chinese lenders hold just 12%, despite often being blamed in public discourse.
Africa’s debt structure is risky
The Speaker explained how the structure of Africa’s borrowing is putting the continent at risk. A significant chunk of national income is going to debt servicing rather than key priorities like healthcare, education, and infrastructure.
“If Africa is to grow stronger,” Abbas said, “we must rethink our dependence on external finance, push for fairer loan terms, and mobilize more domestic resources.”
A call for action—and accountability
To tackle the issue, Abbas announced that Nigeria will lead efforts to create a West African Parliamentary Debt Oversight Framework. This initiative would harmonize debt reporting, improve transparency, and boost regional cooperation.
“Debt oversight must be people-driven,” Abbas said. “Citizens have a right to know how money is borrowed and spent.”
The government’s response: “Reforms are working”
Finance Minister Wale Edun took a more optimistic view. He said Nigeria’s debt situation is improving, thanks to bold reforms like fuel subsidy removal, exchange rate unification, and better tax policies.
According to Edun, Nigeria’s debt service-to-revenue ratio dropped to 60% in 2024, and the debt-to-GDP ratio is now at 38.8%—below the 40% legal limit. “Nigeria is turning the corner,” he said.
Parliamentary reforms are already in motion
Chairman of the House Committee on Public Accounts, Bamidele Salam, shared that the committee recovered over ₦200 billion in lost revenue in the past year. They’ve also started digitizing hearings and launched a PAC Magazine to improve public access to financial reports.
Salam added: “Yes, debt can be useful—but only when it’s managed sustainably and transparently.”
Final thoughts: Stronger institutions, not stronger individuals
Senate President Godswill Akpabio, represented at the conference by Senator Osita Izunaso, echoed the need for empowered legislative institutions to monitor borrowing. “Africa’s future depends on strong institutions—not just strong individuals,” he said.
WAAPAC President Issouf Traore praised Nigeria for hosting the event for the first time and commended the country’s ongoing economic reforms.
