The Speaker of the House of Representatives, Abbas Tajudeen, has raised serious concerns about Nigeria’s escalating debt crisis, stressing that the nation’s rising debt profile has now exceeded the legal borrowing threshold and poses a severe risk to fiscal sustainability.

Speaking in Abuja on Monday during the opening session of the 11th Annual Conference and General Assembly of the West Africa Association of Public Accounts Committees (WAAPAC), Abbas highlighted the need for urgent intervention to prevent further economic strain.

According to him, Nigeria’s total public debt skyrocketed to N149.39 trillion (approximately US$97 billion) in the first quarter of 2025, compared to N121.7 trillion recorded in the previous year. This represents a sharp and worrying increase that reflects how fast the country’s financial burden is mounting.

Even more alarming is Nigeria’s debt-to-GDP ratio, which climbed to 52 percent in early 2025, far above the statutory ceiling of 40 percent as enshrined in law. Abbas emphasized that this breach signals growing instability in the nation’s finances and threatens sustainable economic growth.

“By the first quarter of 2025, Nigeria’s total public debt had surged to N149.39 trillion, which is equivalent to US$97 billion. This rapid increase from N121.7 trillion in the previous year demonstrates how heavy the financial strain has become. The debt-to-GDP ratio now stands at 52 percent, far beyond the 40 percent limit set by law,” Abbas stated.

The Speaker insisted that Nigeria must strengthen oversight, transparency, and accountability in borrowing practices, stressing that loans should only be obtained for projects that provide direct economic and social benefits. He warned that reckless borrowing driven by consumption, corruption, or mismanagement will deepen poverty and undermine development.

Abbas pointed out that many African countries already spend more on debt servicing than on healthcare, education, and other essential services. He urged Nigeria to avoid falling into the same cycle, where debt repayments crowd out investments in critical sectors.

New Debt Oversight Framework

To address this mounting challenge, Abbas unveiled plans to establish a West African Parliamentary Debt Oversight Framework under WAAPAC. This initiative aims to:

• Harmonize debt reporting across the West African sub-region.
• Introduce transparency and accountability standards in borrowing.
• Provide parliaments with accurate data to effectively scrutinize loan agreements.

Additionally, he disclosed plans for a regional capacity-building programme designed to improve debt sustainability analysis and fiscal risk assessment across West Africa.

Borrowing for Development, Not Consumption

Abbas stressed that loans must be directed toward productive sectors such as infrastructure, healthcare, education, and industries that create jobs and reduce poverty. According to him, debt used to fund consumption or lost to corruption cannot be justified.

He further assured Nigerians that the 10th House of Representatives is committed to ensuring transparency through its Open Parliament policy, under which all major borrowing proposals will undergo public hearings. Simplified debt reports will also be made available to the public to promote accountability and citizen participation in monitoring financial decisions.