Rising Public Debt Threatens Nigeria’s Economy, House Speaker Calls For Transparent Borrowing And Responsible Spending

 

Abbas Tajudeen, Speaker of the House of Representatives, has sounded an urgent warning about Nigeria’s rapidly escalating public debt, stressing that the country is now facing serious risks to fiscal stability. The warning came during the opening session of the 11th Annual Conference and General Assembly of the West Africa Association of Public Accounts Committees, WAAPAC, held in Abuja on Monday.

According to Tajudeen, Nigeria’s total public debt rose sharply to N149.39 trillion, roughly US$97 billion, in the first quarter of 2025. This represents a significant increase from N121.7 trillion recorded in the previous year. The surge has pushed the nation’s debt-to-GDP ratio to approximately 52 percent, surpassing the legal ceiling of 40 percent established by national statutes.

“This level of debt signals a growing strain on our fiscal stability. It is imperative that we strengthen oversight and ensure all borrowing is transparent and delivers real economic and social benefits,” Tajudeen stated, emphasizing the urgent need for reforms in Nigeria’s borrowing practices.

Tajudeen highlighted the dangers of uncontrolled borrowing, drawing attention to a worrying trend across the African continent, where some nations spend more on servicing debt than funding critical services such as healthcare and education. He cautioned that Nigeria must avoid following a similar path that could compromise essential public services and long-term development.

To mitigate these risks, the Speaker announced plans to launch a West African Parliamentary Debt Oversight Framework under the auspices of WAAPAC. The initiative aims to harmonize debt reporting among member states, establish clear transparency standards, and equip parliaments with the necessary data to scrutinize borrowing effectively.

A regional capacity-building programme is also planned, designed to strengthen expertise in debt sustainability analysis and fiscal risk assessment. Tajudeen stressed that lawmakers will now be better positioned to monitor and evaluate borrowing, ensuring that funds are deployed responsibly and for projects that directly benefit citizens.

The Speaker underscored the importance of channeling borrowed funds toward sectors that stimulate economic growth and societal welfare. Infrastructure, healthcare, education, and job-creating industries were identified as priority areas. He warned that borrowing for consumption or projects marred by corruption threatens economic stability and must be strictly avoided.

Accountability and transparency remain central to the 10th House’s agenda. Tajudeen reiterated that major borrowing proposals will undergo public hearings under the Open Parliament policy. Simplified debt reports will be made accessible to citizens, empowering them to understand the implications of government borrowing and engage in informed discourse.

Fiscal experts have long cautioned that exceeding debt limits can have far-reaching consequences, including crowding out critical government spending, increasing interest burdens, and eroding investor confidence. Tajudeen’s address signals a renewed commitment by Nigeria’s legislature to prioritize responsible borrowing and rigorous debt management.

Regional collaboration is also a key element of the Speaker’s strategy. By creating standardized reporting mechanisms and strengthening parliamentary oversight across West Africa, Tajudeen hopes to foster transparency and promote best practices in debt management. This initiative aims to prevent fiscal crises, enhance accountability, and ensure that borrowing contributes meaningfully to economic and social development.

“The message is clear. Nigeria must reject reckless borrowing and pursue a path of disciplined financial management. Responsible borrowing is not just a policy choice; it is essential for the welfare of our citizens and the stability of our economy,” he emphasized.

As Nigeria grapples with rising debt levels, the House Speaker’s warning serves as a critical call to action for lawmakers, policymakers, and the public. Transparent borrowing, strategic investment, and robust oversight are now more urgent than ever if the country is to safeguard its fiscal future.