ABUJA — The Minister of Finance, Wale Edun, and Speaker of the House of Representatives, Abbas Tajudeen, on Monday presented sharply contrasting views on Nigeria’s debt profile during the 11th Annual Conference of the West Africa Association of Public Accounts Committees (WAAPAC) in Abuja.
Speaker Abbas, represented by House Leader Prof. Julius Ihonvbhere, raised alarm that Nigeria’s debt had surged to ₦149.39 trillion (about $97 billion) in Q1 2025, up from ₦121.7 trillion in 2024. He warned that the debt-to-GDP ratio had reached 52 percent, surpassing the statutory ceiling of 40 percent.
“This level of borrowing signals fiscal strain and undermines sustainability,” Abbas said. He urged parliaments across West Africa to intensify oversight, insisting that loans should fund infrastructure, education, healthcare, and jobs—not consumption or corruption.
Breaking down Africa’s debt profile, Abbas noted that 35 percent is owed to Western private lenders, 39 percent to multilateral institutions like the IMF and World Bank, 13 percent to bilateral creditors, and 12 percent to China. He also called for public hearings on major loan proposals and simplified debt reports for citizens.
But Finance Minister Edun struck a more upbeat tone, insisting Nigeria was “turning the corner” under President Bola Tinubu’s reforms. He maintained that the debt-to-GDP ratio was a manageable 38.8 percent, while debt service-to-revenue fell to 60 percent in 2024.
“Revenues rose by 34.7 percent in the first half of 2025, and reforms are restoring investor confidence,” Edun said, crediting gains to subsidy removal, exchange-rate liberalisation, and tax reforms. He emphasised project-linked borrowing, transparency, and fiscal discipline, adding: “Government must act as a catalyst, not crowd out private investment. With discipline, we can unlock growth that lifts millions from poverty.”
Senate President Godswill Akpabio, represented by Senator Osita Izunaso, also cautioned that unchecked debt could destabilise democracy across Africa. He called for stronger constitutional powers for finance committees to enforce accountability.
Chairman of the House Public Accounts Committee, Rep. Bamidele Salam, disclosed that over ₦200 billion in lost revenues had been recovered in the past year under ongoing fiscal reforms.
Nigeria, hosting WAAPAC for the first time since its creation in 2009, used the conference to spotlight Africa’s deepening debt crisis and the urgent need for stronger oversight and transparent fiscal management.
