The Speaker of the Home of Representatives, Abbas Tajudeen, has warned that Nigeria’s rising debt ranges pose a big menace to fiscal stability, improvement, and the welfare of future generations except pressing motion is taken.
Mr Tajudeen, qwho was represented by the Home Chief, Julius Ihonvbere, gave the warning on Monday on the opening of the eleventh West African Association of Public Accounts Committees (WAAPAC) Convention in Abuja.
The annual gathering introduced collectively lawmakers, monetary specialists, and improvement companions from throughout the sub-region to deliberate on the theme, “Strengthening Parliamentary Oversight of Public Debt: The Function of Finance and Public Accounts Committees.”
The Speaker described the discussion board as well timed, given Nigeria’s current financial actuality and the broader African debt disaster.
He cautioned that the nation’s debt profile had now reached a important level, underscoring the urgency of reforming oversight mechanisms and guaranteeing that every one borrowing choices are anchored in transparency, prudence, and tangible social affect.
“In Nigeria, current obtainable information point out that our debt trajectory has reached a important level, displaying that as on the first quarter of 2025, the whole public debt stood at ₦149.39 trillion, equal to about US$97 billion, with home borrowing making up 53 per cent and exterior borrowing accounting for 47 per cent.
“This represents a pointy rise from ₦121.7 trillion the earlier yr, underscoring how rapidly the burden has grown. Much more regarding is the debt-to-GDP ratio, which now stands at roughly 52 per cent, nicely above the statutory ceiling of 40 per cent set by our personal legal guidelines,” Mr Tajudeen stated.
This breach of the nation’s debt restrict, in accordance with him, alerts the pressure on fiscal sustainability.
It highlights the pressing want for stronger oversight, clear borrowing practices, and a collective resolve to make sure that tangible financial and social returns match each naira borrowed, he added.
Mr Tajudeen defined that whereas debt, when rigorously managed, might function a device for nationwide progress, reckless accumulation of liabilities had the other impact.
He emphasised that the effectiveness of debt oversight should transcend parliament to incorporate energetic citizen participation.
“Main borrowing proposals ought to be topic to public hearings, and simplified debt reviews have to be made obtainable to most people. Oversight is best when it isn’t solely parliamentary but in addition people-driven. Residents have the proper to know, and we have now the obligation to tell,” he stated.
He argued that borrowing ought to all the time be channelled in the direction of infrastructure, well being, training, and industries that create jobs and scale back poverty.
Reckless debt that fuels consumption or corruption, he maintained, have to be rejected.
The Nationwide Meeting has lately permitted a number of exterior borrowings for the President Bola Tinubu’s authorities and its predecessors, the Muhammadu Buhari administration with out correct scrutiny.
A continental problem
Past Nigeria’s home issues, Mr Tajudeen additionally positioned the problem inside a continental context.
Citing obtainable information, he famous that Africa’s debt profile had reached alarming proportions, with whole public debt standing at US$1.8 trillion by 2022 and exterior borrowing anticipated to surpass US$1 trillion by 2023.
“A number of nations are actually in harmful debt-to-GDP territory: Sudan at 344 per cent, Angola at 136.8 per cent, Ghana at 84 per cent, Kenya at almost 70 per cent, and South Africa above 77 per cent. In lots of of those circumstances, governments are spending extra on debt servicing than on healthcare and different important companies, shrinking the fiscal house obtainable for improvement,” he stated.
The speaker warned that this actuality factors to a structural disaster that calls for pressing and coordinated parliamentary motion throughout Africa.
He highlighted that the composition of Africa’s debt was itself a supply of vulnerability.
“Western personal lenders, together with banks and asset managers, maintain about 35 per cent of the continent’s debt; multilateral establishments such because the World Financial institution and IMF account for 39 per cent; bilateral loans comprise 13 per cent; and Chinese language collectors maintain 12 per cent.
“To position this in sharper focus, in 2019, bondholders alone represented 27 per cent of Africa’s exterior debt, making them the one largest creditor group, forward of China at 13 per cent,” he added.
In accordance with him, this creditor construction leaves African economies closely uncovered to international market shocks, foreign money volatility, and rate of interest hikes.
Reform and regional motion
Mr Tajudeen stated the best way ahead was clear: African nations should take larger accountability for his or her fiscal destinies by strengthening oversight establishments, investing in home useful resource mobilisation, and forging stronger regional cooperation.
He stated, “The implications of this construction are far-reaching. A big share of our nationwide revenues is tied to debt servicing fairly than being invested within the issues our individuals want most: roads, colleges, hospitals, and innovation.”
He lamented that the excessive price of business loans, coupled with the burden of reimbursement in foreign currency, leaves many African economies susceptible to market shocks. This he stated, narrows fiscal house, constrains home coverage selections, and slows the tempo of sustainable improvement.
To reverse the development, he referred to as on parliaments to behave decisively.
Mr Tajudeen reaffirmed that the tenth Home of Representatives stays dedicated to transparency and accountability in public finance administration.
He disclosed that deliberate steps have been taken to strengthen oversight mechanisms, enhance reporting requirements, and be certain that all public funds are managed with integrity.
“In step with this dedication, I’m happy to announce Nigeria’s readiness to champion the institution of a West African Parliamentary Debt Oversight Framework below WAAPAC.
“This framework will harmonise debt reporting throughout our nations, create regional requirements for transparency, and empower our parliaments with well timed information for efficient scrutiny of borrowing practices.
“It’s my conviction that this framework will strengthen our bargaining energy in worldwide finance and defend the long-term pursuits of our residents,” he stated.
The speaker additional revealed Nigeria’s plan to work with WAAPAC and improvement companions to determine a capacity-building programme for Public Accounts and Finance Committees throughout the area.
This programme, he stated, will equip legislators and employees with trendy instruments for debt sustainability evaluation, fiscal threat evaluation, and oversight of complicated monetary devices.
Mr Tajudeen urged WAAPAC to construct on its legacy since its institution in 2009, calling for a stronger, extra proactive physique that might stand as a continental chief in fiscal accountability.
“This convention supplies us with a possibility to replicate, share experiences, and develop new methods for debt governance which can be each accountable and sustainable. As we glance to the long run, we should envision WAAPAC as a continental chief in fiscal accountability, increasing its attain and deepening its affect over the following decade,” he concluded.
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PAC publicizes restoration of ₦200bn
Talking earlier, the Chairman of the Home of Representatives Public Accounts Committee, Bamidele Salam, introduced that the committee had efficiently recovered over ₦200 billion in misplaced income for the federal authorities prior to now yr.
Mr Salam defined that the restoration adopted intensive investigations and audits into the monetary information of ministries, departments, and businesses (MDAs) as a part of the committee’s constitutional mandate.
In accordance with him, the intervention helped block leakages, strengthen compliance with monetary rules, and reinforce public confidence within the legislature’s oversight position.
He added that the recovered funds have since been remitted to the federation account, stressing that the achievement underscored the committee’s resolve to guard scarce nationwide sources and guarantee they’re utilized in the most effective curiosity of Nigerians.
The PAC chairman assured that the committee would intensify its efforts, not solely in income restoration but in addition in selling larger accountability, transparency, and effectivity throughout the general public sector.
