The Speaker of the House of Representatives, Abbas Tajudeen, has voiced serious concerns over Nigeria’s rapidly growing debt profile, warning that it has surpassed the legal threshold and threatens the country’s financial stability.
Speaking at the WAAPAC Conference in Abuja, Abbas revealed that Nigeria’s total public debt rose to ₦149.39 trillion (approximately US$97 billion) in the first quarter of 2025, a significant jump from ₦121.7 trillion recorded in 2024.
He noted that the debt-to-GDP ratio has reached 52%, well above the 40% limit set by law, describing the situation as “a signal of strain on fiscal sustainability.”
Abbas warned that several African countries are already allocating more funds to debt servicing than to essential sectors like education and healthcare, calling it “a structural crisis that demands urgent attention.”
To address the challenge, he announced plans for a West African Parliamentary Debt Oversight Framework, which will:
Harmonize debt reporting standards across the region,
Improve transparency in public borrowing, and
Give parliaments better access to financial data for effective oversight.
The Speaker also pledged to enhance accountability in Nigeria by conducting public hearings on major loans and publishing simplified debt reports for citizens.
“Borrowing should be channeled into infrastructure, healthcare, education, and industries that create jobs,” Abbas said. “Reckless debt that fuels consumption or corruption must be exposed and rejected.”
Economists have echoed Abbas’s concerns, urging the government to prioritize productive investments and revenue diversification to reduce reliance on loans and prevent a debt crisis.
