Nigeria’s debt burden has surpassed its statutory limit, prompting Speaker of the House of Representatives, Abbas Tajudeen, to issue a stark warning that unchecked borrowing now poses a grave threat to the nation’s fiscal stability.
The Speaker raised the alarm on Monday while declaring open the 11th Annual Conference and General Assembly of the West Africa Association of Public Accounts Committees (WAAPAC), hosted at the National Assembly in Abuja.
The high-level conference brought together parliamentarians, development partners, and financial experts from across West Africa under the theme: “Strengthening Parliamentary Oversight of Public Debt: The Role of Finance and Public Accounts Committees.”
Abbas noted that Nigeria’s debt profile had reached “a critical point” that demands urgent reform. Citing official figures, he revealed that as of the first quarter of 2025, the country’s total public debt stood at ₦149.39 trillion (about US$97 billion)—a steep rise from ₦121.7 trillion the previous year.
“Even more concerning is the debt-to-GDP ratio, which now stands at roughly 52 per cent, well above the statutory ceiling of 40 per cent set by our own laws,” the Speaker said. “This is not just a budgetary concern but a structural crisis that demands urgent parliamentary attention and coordinated reform.”
Abbas stressed that debt servicing was already consuming a disproportionate share of government revenue, leaving little room for investment in infrastructure, health, and education. Fiscal analysts warn that Nigeria now spends more on debt repayment than on social services, a trajectory that could push the economy toward unsustainable levels.
Describing the breach of the debt limit as “a signal of strain on fiscal sustainability,” the Speaker called for stronger parliamentary oversight, transparent borrowing practices, and a collective resolve to ensure that loans translate into tangible economic and social benefits.
He drew parallels with other African countries trapped in mounting debt-service obligations, warning that Nigeria must avoid falling into the same cycle. To this end, he announced that Nigeria is ready to champion the establishment of a West African Parliamentary Debt Oversight Framework under WAAPAC.
According to him, the framework will harmonise debt reporting across the sub-region, set clear transparency standards, and provide parliaments with timely data to scrutinise borrowing practices. He also unveiled plans for a regional capacity-building programme to equip Public Accounts and Finance Committees with modern tools for debt sustainability analysis and fiscal risk management.
While acknowledging that borrowing remains a legitimate tool for financing development, Abbas cautioned against debt accumulation that fuels consumption or corruption.
“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 said.
He further reiterated the 10th House’s commitment to transparency and accountability in public finance. Under its Open Parliament Policy, he explained, all major borrowing proposals will be subjected to public hearings, while simplified debt reports will be published for citizens.
Abbas urged WAAPAC participants to treat their deliberations with urgency and dedication, stressing that the outcomes would play a vital role in strengthening fiscal responsibility and accountability across the continent.
