MNN Hub
Reps Speaker Raises Concern Over Nigeria’s N149.4trn Debt Profile
Speaker of the House of Representatives, Dr. Abass Tajudeen, has expressed concern over Nigeria’s public debt profile, which was ₦149.39 trillion, approximately US$97 billion, as of the first quarter of this year. Domestic borrowing accounts for 53 per cent, while external borrowing makes up 47 per cent.
Speaking at the opening of the 11th Annual Conference and General Assembly of the West Africa Association of Public Account Committees (WAAPAC), held at the National Assembly complex on Monday in Abuja, he noted that the amount represents a sharp increase from ₦121.7 trillion the previous year, emphasising how quickly the burden has grown.
The speaker noted that even more concerning is the debt-to-GDP ratio, which now stands at approximately 52 per cent, well above the statutory ceiling of 40 per cent set by our own laws.
He argued that this breach of the debt limit signals strain on fiscal sustainability, emphasising the urgent need for stronger oversight, transparent borrowing practices, and a collective resolve to ensure that tangible economic and social returns match every naira borrowed.
The speaker further stated that across Africa, debt levels have reached alarming proportions, with the continent’s total public debt estimated at US$1.8 trillion by 2022, and external debt alone expected to exceed US$1 trillion by 2023.
He revealed that as a result, several countries are now in dangerous debt-to-GDP territory: Sudan at 344 per cent, Angola at 136.8 per cent, Ghana at 84 per cent, Kenya at nearly 70 per cent, and South Africa above 77 per cent. He noted that in many cases, governments are spending more on servicing debt than on healthcare and other essential services, thereby shrinking the fiscal space available for development.
He contended that the continental picture makes clear that Africa faces not just a budgetary concern, but a structural crisis that demands urgent parliamentary attention and coordinated reform.
The speaker disclosed that as of today, Western private lenders hold about 35 per cent of Africa’s government debt through banks, asset managers, and oil traders. Multilateral institutions, such as the World Bank and the IMF, account for another 39 per cent, while bilateral loans from other governments comprise 13 per cent. Chinese creditors, despite much of the public debate, hold only 12 per cent.
Decrying the development, he noted: “To place this in sharper focus, in 2019, bondholders alone represented 27 per cent of Africa’s external debt, making them the single largest creditor group, ahead of China at 13 per cent. The implications of this structure are far-reaching. A significant share of our national revenues is tied to debt servicing rather than being invested in the things our people need most: roads, schools, hospitals, and innovation.
“The high cost of commercial loans, coupled with the burden of repayment in foreign currencies, leaves many African economies vulnerable to market shocks. This narrows fiscal space, constrains domestic policy choices, and slows the pace of sustainable development.
“If Africa is to grow stronger, we must not only negotiate fairer terms of borrowing but also rethink our dependence on external finance. We must channel more energy into mobilising domestic resources, fostering intra-African trade, and creating financial instruments that serve the continent’s own development priorities. Only then can we move from vulnerability to resilience, and from dependency to true economic sovereignty.”
The speaker thereby emphasised that effective oversight of public debt demands vigilance, knowledge, and institutional strength, as debt levels in Africa are increasing at a rate that requires those in authority to act with foresight.
Calling on participants to reflect, share experiences, and develop new strategies for debt governance that are both responsible and sustainable, he argued that empowering our Public Accounts and Finance Committees will help establish institutions capable of upholding fiscal discipline and shielding our economies from the dangers of reckless borrowing.
Source: EconomicConfidential | Read the Full Story…
