By Mercy Gadia Adi
Speaker of the House of Representatives, Rt. Hon. Abbas Tajudeen, PhD, has warned that Nigeria’s rising debt profile has reached a critical level, urging parliaments across West Africa to strengthen oversight of borrowing to safeguard the future of citizens.
He made the remarks on Monday at the 11th Annual Conference and General Assembly of the West Africa Association of Public Accounts Committees (WAAPAC), hosted by the House of Representatives Public Accounts Committee, with the theme: “Strengthening Parliamentary Oversight of Public Debt.”
Represented by the House Leader, Prof. Julius Ihonvbhere, Abbas disclosed that Nigeria’s total public debt rose to ₦149.39 trillion (about US$97 billion) in the first quarter of 2025, compared to ₦121.7 trillion the previous year. He added that the country’s debt-to-GDP ratio had climbed to 52 percent, breaching the statutory ceiling of 40 percent.
“This breach of our debt limit signals the strain on fiscal sustainability. 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,” Abbas said.
The Speaker noted that across Africa, debt has become a structural crisis, with many countries spending more on servicing loans than on healthcare and essential services. “Our oversight must also be people-driven. Major borrowing proposals should be subject to public hearings, and simplified debt reports must be made available to the public. Citizens have the right to know, and we have the duty to inform,” he added.
Abbas announced Nigeria’s readiness to champion a West African Parliamentary Debt Oversight Framework under WAAPAC. He said the framework would harmonize debt reporting, create regional transparency standards, and strengthen parliamentary scrutiny. He further revealed plans for a capacity-building programme to equip Public Accounts and Finance Committees across the region with modern tools for debt sustainability analysis and risk assessment.
“Borrowing must be tied to infrastructure, health, education, and job-creating industries. Reckless debt that fuels consumption or corruption must be exposed and rejected,” the Speaker cautioned.
Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said bold economic reforms are already yielding results, with debt levels becoming more sustainable and investor confidence returning.
“Nigeria is turning the corner. 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,” he told delegates.
Edun disclosed that Nigeria’s debt service-to-revenue ratio fell to about 60 percent in 2024, while the debt-to-GDP ratio stands at 38.8 percent, which he described as “comfortable compared to global benchmarks.” He also noted that government revenues grew by 34.7 percent in the first half of 2025, expanding fiscal space for investment in priority sectors.
He credited the gains to tough but necessary policies such as fuel subsidy removal, exchange rate liberalization, and tax reforms. “Government’s role is to act as a catalyst, not to crowd out the private sector. With the right fiscal discipline, we can unlock opportunities and ensure inclusive growth that lifts millions out of poverty,” Edun said.
The minister stressed the importance of parliamentary collaboration. “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,” he emphasized.
Senate President Godswill Akpabio also called on West African countries to strengthen constitutional backing for public accounts and finance committees to guarantee transparency, accountability, and sustainability in debt management.
Represented by Senator Osita Izunaso, Akpabio said unchecked debt can “mortgage the future of citizens and undermine democracy.” He maintained that “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.”
Akpabio added that Africa’s progress depends on building strong institutions rather than strong individuals. “The Nigerian experience has shown that when parliamentary committees are empowered by law, transparency is deepened, fiscal responsibility is strengthened, and democracy is enriched,” he said.
He assured that Nigeria remains committed to partnering with regional and international bodies to strengthen institutions, promote fiscal responsibility, and protect nations from unsustainable debt risks.
Chairman of the House Committee on Public Accounts, Rep. Bamidele Salam, revealed that the committee had recovered over ₦200 billion in lost revenues for the federal government in the past year.
“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.
He highlighted reforms, including digitalizing committee hearings and launching PAC Magazine to improve transparency and public engagement. “For the first time since Nigeria’s return to democracy in 1999, we have completed reports that were considered and adopted by the House,” he noted.
Salam also disclosed progress on the long-awaited Audit Bill, now before the Senate. “We look forward very earnestly to its passage so that this important bill can be transmitted to the President for assent and remove Nigeria from the list of countries without a legal framework for its Supreme Audit Institution,” he said.
WAAPAC President, Hon. Issouf Traore, commended Nigeria for hosting the conference for the first time since the association’s creation in 2009. He urged African countries to work together in addressing fiscal challenges.
“We must work together for the good of the continent,” Traore said, while praising President Bola Tinubu’s efforts at reviving Nigeria’s economy.