Speaker of the House of Representatives, Abbas Tajudeen, has sounded the alarm over Nigeria’s rising debt burden, warning that it has surpassed the country’s statutory threshold and now threatens fiscal sustainability.
Speaking on Monday at 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 described the situation as “a critical point” requiring urgent reforms in borrowing practices and oversight.
“As at the first quarter of 2025, Nigeria’s total public debt stood at ₦149.39 trillion (about $97 billion), up from ₦121.7 trillion the previous year. Even more concerning is the debt-to-GDP ratio of roughly 52 percent, far above the statutory ceiling of 40 percent set by our laws,” the Speaker noted.
He warned that the breach signals growing strain on fiscal stability, adding that borrowing must be tied to tangible development outcomes.
“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. Oversight is not just about figures, but about the lives and futures behind those figures,” he stressed.
Abbas also highlighted that many African nations now spend more on debt servicing than on healthcare and essential services — a trend Nigeria must avoid.
To mitigate risks, the Speaker announced that Nigeria would spearhead the creation of a West African Parliamentary Debt Oversight Framework under WAAPAC. The framework will harmonise debt reporting across the sub-region, set transparency standards, and empower parliaments with timely data for scrutiny.
He further unveiled plans for a regional capacity-building programme to strengthen the ability of Finance and Public Accounts Committees to conduct debt sustainability analysis and fiscal risk assessment.
Reaffirming the 10th House’s commitment to accountability, Abbas said all major borrowing proposals would undergo public hearings under the chamber’s Open Parliament policy, while simplified debt reports would be made accessible to citizens.
The conference, attended by parliamentarians, development partners, and financial experts across West Africa, is focusing on the theme: “Strengthening Parliamentary Oversight of Public Debt: The Role of Finance and Public Accounts Committees.”
