by Muhammad Mamman
Nigeria’s soaring debt burden took centre stage on Monday as Speaker of the House of Representatives, Abbas Tajudeen, and Minister of Finance, Wale Edun, clashed over the true state of the nation’s fiscal health.
Speaking at the 11th Annual Conference and General Assembly of the West Africa Association of Public Accounts Committees (WAAPAC), held in Abuja, Abbas raised the alarm that Nigeria’s total debt stock had climbed to ₦149.39 trillion (about $97 billion) in the first quarter of 2025, up sharply from ₦121.7 trillion a year earlier.
He warned that the country’s debt-to-GDP ratio had reached 52 per cent, breaching the statutory ceiling of 40 per cent and posing serious risks to fiscal sustainability.
“Nigeria’s debt profile has reached a critical level. We must strengthen oversight of borrowing and ensure that every naira translates into tangible economic and social benefits,” Abbas said, represented by House Leader, Prof Julius Ihonvbere.
The Speaker also cautioned that across Africa, debt has become a structural crisis, with many nations spending more on loan servicing than on healthcare and education. He called for people-driven oversight, including public hearings on borrowing proposals and simplified debt reports to ensure citizens are informed.
Abbas highlighted the structure of Africa’s external debt: 35 per cent owed to Western private lenders, 39 per cent to multilateral institutions such as the IMF and World Bank, 13 per cent to bilateral creditors, and 12 per cent to China. He stressed that loans should target infrastructure, education, health, and job creation — not consumption or corruption.
But Finance Minister Edun struck a more optimistic tone, insisting that Nigeria was “turning the corner” under President Bola Tinubu’s economic reforms.
According to him, the debt service-to-revenue ratio fell to 60 per cent in 2024, while the debt-to-GDP ratio stood at a more modest 38.8 per cent, which he described as sustainable by global standards.
“Revenues grew by 34.7 per cent in the first half of 2025. Investor confidence is returning, energy self-sufficiency is improving, and our economy is adding value. The tough reforms — subsidy removal, exchange-rate unification, and tax reforms — are paying off,” Edun declared.
He emphasised that government borrowing would remain project-linked, transparent, and aligned with the Fiscal Responsibility Act, while urging lawmakers to play their part in safeguarding fiscal discipline.
Senate President Godswill Akpabio, represented by Senator Osita Izunaso, echoed similar sentiments, warning that unchecked debt could erode democracy and citizens’ future. He underscored the need for stronger parliamentary oversight across West Africa to ensure sustainability in public finance.
Chairman of the House Public Accounts Committee, Bamidele Salam, revealed that the committee had recovered over ₦200 billion in lost revenues for the federal government in the past year, describing the gathering as “timely and necessary” amid Africa’s mounting debt crisis.
The sharp exchange between Abbas and Edun comes barely weeks after the National Assembly approved President Tinubu’s $21 billion external borrowing plan for the 2025–2026 fiscal cycle, highlighting the tension between Nigeria’s urgent financing needs and concerns over its mounting liabilities.
