Nigeria’s spiralling debt sparked a heated exchange on Monday between Finance Minister Wale Edun and House of Representatives Speaker Abbas Tajudeen at 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 the country’s total debt stock had climbed to ₦149.39 trillion ($97bn) in Q1 2025, up from ₦121.7 trillion a year earlier. He warned that the debt-to-GDP ratio had soared to 52%, far above the statutory 40% ceiling.
“This level of borrowing signals fiscal strain and undermines sustainability,” Abbas said, urging parliaments across West Africa to tighten oversight. He stressed that borrowing should be tied to infrastructure, health, education, and job creation, rather than consumption or corrupt practices.
Abbas further broke down Africa’s debt structure: 35% owed to Western private lenders, 39% to multilateral institutions such as the IMF and World Bank, 13% to bilateral partners, and 12% to China. He called for public hearings on major loan proposals and simplified reports that ordinary citizens can understand.
But Finance Minister Wale Edun countered with a more upbeat assessment. He insisted Nigeria is “turning the corner” under President Bola Tinubu’s reforms, citing a debt-to-GDP ratio of 38.8% and a drop in the debt service-to-revenue ratio to 60% in 2024.
“Revenues rose by 34.7% in the first half of 2025, and reforms are restoring investor confidence,” Edun said, crediting subsidy removal, exchange-rate unification, and tax reforms for the gains. He emphasised project-linked borrowing, fiscal transparency, and discipline as key to unlocking growth.
“Government must act as a catalyst, not crowd out private investment. With discipline, we can lift millions from poverty,” the minister added.
Senate President Godswill Akpabio, represented by Senator Osita Izunaso, also cautioned that unchecked debt could threaten democracy across Africa. He called for stronger constitutional powers for finance committees to enforce accountability.
Meanwhile, Rep. Bamidele Salam, Chair of the House Public Accounts Committee, disclosed that over ₦200bn in lost revenues had been recovered in the past year as part of ongoing fiscal reforms.
Hosting WAAPAC for the first time since its creation in 2009, Nigeria placed the spotlight on Africa’s deepening debt crisis—and the pressing need for transparent fiscal management and stronger parliamentary oversight.
