•Abbas Tajudeen
Speaker of the House of Representatives, Rep. Abbas Tajudeen, has warned that Nigeria’s rising debt profile has reached a critical and unsustainable level, stressing the urgent need for stronger legislative oversight to safeguard the country’s economic future.
Speaking at the opening of the 11th Annual Conference and General Assembly of the West Africa Association of Public Accounts Committees (WAAPAC) at the National Assembly Complex, Abuja, Abbas disclosed that Nigeria’s total public debt hit ₦149.39 trillion (about US$97 billion) in the first quarter of 2025, reports Vanguard.
He said: “Even more concerning is the debt-to-GDP ratio, which now stands at roughly 52 per cent, well above the statutory ceiling of 40 per cent set by our own laws. This breach of our debt limit signals the strain on fiscal sustainability.”
The Speaker warned that unless urgent reforms are undertaken, Nigeria risks mortgaging the welfare of future generations. “Oversight of public debt is a democratic duty and a moral responsibility of the legislature,” he stated.
“Our parliaments must ensure that every borrowing decision reflects prudence, transparency, and the collective interest of our citizens.”
Abbas also painted a grim picture of Africa’s debt situation, noting that the continent’s total public debt reached US$1.8 trillion by 2022, with external debt projected to surpass US$1 trillion by 2023.
He cited countries already in dangerous debt-to-GDP territory, including Sudan at 344 percent, Angola at 136.8 percent, Ghana at 84 percent, Kenya at nearly 70 percent, and South Africa above 77 percent.
“Nigeria, recent available data indicate that our debt trajectory has reached a critical point, showing that as at the first quarter of 2025, the total public debt stood at ₦149.39 trillion, equivalent to about US$97 billion, with domestic borrowing making up 53 percent and external borrowing accounting for 47 percent.
“This represents a sharp rise from ₦121.7 trillion the previous year, underscoring how quickly the burden has grown.
“Even more concerning is the debt-to-GDP ratio, which now stands at roughly 52 percent, well above the statutory ceiling of 40 percent set by our own laws. This breach of our debt limit signals the strain on fiscal sustainability.
“In many cases, governments are spending more on servicing debt than on healthcare and other essential services,” Abbas lamented.
“This is not just a budgetary concern, but a structural crisis that demands urgent parliamentary attention and coordinated reform.”
”It highlights the urgent need for stronger oversight, transparent borrowing practices, and a collective resolve to ensure that tangible economic and social returns match every naira borrowed. Across Africa, debt levels have reached alarming proportions.
“By 2022, the continent’s total public debt had reached US$1.8 trillion, with external debt alone expected to surpass US$1 trillion by 2023.
“Several countries are now in dangerous debt-to-GDP territory: Sudan at 344 percent, Angola at 136.8 percent, Ghana at 84 percent, Kenya at nearly 70 percent, and South Africa above 77 percent.
“In many cases, governments are spending more on servicing debt than on healthcare and other essential services, shrinking the fiscal space available for development.
“This continental picture makes clear that Africa faces not just a budgetary concern, but a structural crisis that demands urgent parliamentary attention and coordinated reform.
“The countries of the West African sub-region carry the same burden. Distinguished Participants, when we examine the sources of Africa’s external financing, it becomes clear that the weight of debt on our continent is shaped by who 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.6. The implications of this structure are far-reaching. 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.
“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. If Africa is to grow stronger, we must not only negotiate fairer terms of borrowing but also rethink our 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. “It is also important to stress that effective oversight of public debt requires vigilance, knowledge, and institutional strength.
“As already noted, debt levels in Africa are rising at a pace that compels us to act with foresight. By empowering our Public Accounts and Finance Committees, we create institutions that can stand as guardians of fiscal discipline and protect our economies from the risks of reckless borrowing.
“This conference provides us with an opportunity to reflect, share experiences, and develop new strategies for debt governance that are both responsible and sustainable. Furthermore, the imperative of the subject matter lies in its cross-border nature.
“No country in our region can claim immunity from the consequences of debt mismanagement. Unsustainable debt in one country can affect the stability of others, weaken regional trade, and undermine collective development.
“It is therefore our shared responsibility to use WAAPAC as a platform for solidarity, peer learning, and collective action. The resolutions of this assembly will not only shape national policies but will also reinforce the accountability architecture of the entire sub-region.
“The 10th House of Representatives is firmly committed to transparency and accountability in public finances. We recognise that in Africa, where development challenges remain acute, fiscal responsibility becomes indispensable. This is why the House has taken deliberate steps to strengthen parliamentary oversight mechanisms, improve reporting standards, and ensure that public funds are managed with integrity.
“In doing so, we reaffirm our conviction that transparency is the cornerstone of good governance and the key to rebuilding public trust.”
The Speaker highlighted the composition of Africa’s external financing, revealing that private Western lenders now hold 35 percent of the continent’s debt, while multilateral institutions like the World Bank and IMF account for 39 percent. Chinese creditors, he clarified, hold only 12 percent, contrary to widespread perceptions.
According to him, the heavy reliance on costly commercial loans has left African economies vulnerable.
“If Africa is to grow stronger, we must not only negotiate fairer terms of borrowing but also rethink our dependence on external finance,” he said. “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.”
Abbas announced Nigeria’s readiness to spearhead the establishment of a West African Parliamentary Debt Oversight Framework under WAAPAC to harmonize debt reporting, set transparency standards, and provide timely data for scrutiny. He also pledged the creation of a regional capacity-building programme to strengthen Public Accounts and Finance Committees across West Africa.
“Major borrowing proposals should be subject to public hearings, and simplified debt reports must be made available to the general public,” the Speaker declared.
“Oversight is most effective when it is not only parliamentary but also people-driven. Citizens have the right to know, and we have the duty to inform.”
Abbas called on delegates to use WAAPAC as a platform for collective action, emphasizing that “unsustainable debt in one country can affect the stability of others, weaken regional trade, and undermine collective development.”
Declaring the conference open, he urged participants to engage fully in the deliberations.
“The communiques and resolutions that will emerge from this gathering hold the potential to strengthen effective public finance management and accountability across our continent and our dear country, Nigeria,” he said.
On Nigeria’s fiscal trajectory, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, struck a more optimistic tone, insisting that the country’s bold economic reforms are already delivering results.
“Nigeria is turning the corner,” Edun said.
“The reforms are delivering measurable impact in terms of investor confidence, reduced spending on fuel imports, greater energy self-sufficiency, and value addition in our economy.”
Edun disclosed that Nigeria’s debt service-to-revenue ratio dropped to about 60 percent in 2024, while the debt-to-GDP ratio currently stands at 38.8 percent, which he described as “a comfortable level compared to global benchmarks.” He said revenues grew by 34.7 percent in the first half of 2025 compared with the same period last year, expanding fiscal space for investment in priority sectors.
The minister credited the gains to policy decisions such as subsidy removal, exchange rate liberalisation, and comprehensive tax reforms.
He emphasised that government’s role is to “act as a catalyst, not to crowd out the private sector,” insisting that fiscal discipline and transparency are essential for inclusive growth.
“A sound fiscal framework is not just the responsibility of the executive; it demands partnership, leadership, and rigorous oversight from parliamentarians such as you, especially public accounts and finance committees,” Edun told the delegates.
Senate President Godswill Akpabio, represented by Senator Osita Izunaso, also underscored the need for stronger legislative institutions to monitor public borrowing.
“Public debt, when properly managed, is a strategic instrument for financing growth, infrastructure, and sustainable development. However, when left unchecked or shrouded in opacity, it becomes a burden that mortgages the future of our citizens. This is why parliamentary oversight is indispensable,” Akpabio said.
He urged WAAPAC member countries to strengthen constitutional backing for Public Accounts Committees to guarantee independence and effectiveness in safeguarding public resources.
“Africa’s progress depends on building strong institutions rather than relying on strong individuals,” he added.
Chairman of the House Committee on Public Accounts, Rep. Bamidele Salam, revealed that the committee had recovered over ₦200 billion in lost revenues within the last one year and passed landmark reports adopted by the House for the first time since 1999.
He also disclosed that the committee had embarked on digitalisation of its hearings and launched a PAC Magazine to improve transparency.
“While it is widely accepted that public debt remains a vital instrument for financing development, especially in emerging economies, it must remain sustainable, transparent and justifiable,” Salam said.
WAAPAC President, Hon. Issouf Traore, commended Nigeria for hosting the conference for the first time since the association’s creation in 2009. He also praised President Bola Tinubu for reforms aimed at reviving Nigeria’s economy.
