• 38.8% debt-to-GDP ratio below global benchmark
• Borrowings tied to projects
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, yesterday said Nigeria’s debt-to-Gross Domestic Product (GDP) ratio now stands at 38.8 per cent, as macroeconomic reforms continue to drive stronger revenue performance.
The debt-to-GDP ratio of 38.8 per cent is considerably lower than average global benchmark of about 60 per cent.
Nigeria’s total public debt stood at N149.39 trillion, equivalent to about $97 billion by the end of the first quarter of 2025. Domestic borrowings made up 53 per cent while external borrowings accounted for 47 per cent.
Edun said government’s revenue grew by 34.7 per cent in the first half 2025 compared with the corresponding period of last year, expanding fiscal space for investments in priority sectors.
He said Nigeria’s bold economic reforms are beginning to yield results, with debt levels becoming more sustainable and investor confidence returning.
He said the government is committed to project-linked borrowing that yields direct returns, assuring Nigerians that the administration would avoid reliance on money-printing or unsustainable financing.
Edun outlined the government’s fiscal priorities to include debt transparency, growth-enhancing borrowing, domestic revenue mobilisation, and prudent budgeting within limits set by the Fiscal Responsibility Act.
Senate President Godswill Akpabio called on West African countries to strengthen constitutional backing for public accounts and finance committees to guarantee transparency, accountability, and sustainability in public debt management.
Speaker of House of Representatives, Abbas Tajudeen, noted that Nigeria could leverage responsible borrowing for sustainable development, stressing the need for a responsible debt management that ensures that borrowing translates into real value for Nigerians.
He pointed out that President Bola Tinubu was working assiduously to address Nigeria’s public debt through a non-oil revenue drive, adding that if well utilised, public debt can engender growth and development in any country.
They spoke at the 11th Annual Conference and General Assembly of West Africa Association of Public Accounts Committees (WAAPAC), organised by House of Representatives Public Accounts Committee yesterday in Abuja. The theme of the event was: “Strengthening Parliamentary Oversight of Public Debt”.
The week-long conference brought together lawmakers from Benin, Burkina Faso, Cote D’Ivoire, Ghana, Guinea, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, The Gambia, Togo, and participants from South Africa.
Edun credited the emerging macroeconomic gains to tough but necessary policy choices made by President Bola Tinubu, including removal of fuel subsidies, liberalisation of the exchange rate, and the roll-out of a comprehensive tax reform programme to boost efficiency, simplifying compliance, and raising Nigeria’s tax-to-GDP ratio over time.
According to him, these reforms were essential in creating a predictable macroeconomic environment that encourages private investment, which accounts for about 90 per cent of economic activity.
He acknowledged that Nigeria, like many countries in West Africa, faces significant fiscal challenges, including elevated debt service costs, constrained revenue, and rising demands for public spending.
He drew attention to global headwinds, such as shrinking development aid, reduced world trade, and rising international interest rates, that have made fiscal management more difficult for developing economies.
He, however, maintained that reforms implemented under President Bola Tinubu are reversing negative trends and setting the country on a sustainable growth path.
“Nigeria is turning the corner. The reforms are delivering measurable impact in terms of investor confidence, reduced spending on fuel imports, greater energy self-sufficiency, and value addition in our economy,” Edun said.
He emphasised that parliamentary oversight is central to maintaining fiscal discipline.
He urged lawmakers to hold governments accountable for borrowing and spending decisions, insisting that transparency and accountability must underpin every fiscal framework.
“A sound fiscal framework is not just the responsibility of the executive; it demands partnership, leadership, and rigorous oversight from parliamentarians like you, especially public accounts and finance committees,” Edun said.
He described Nigeria’s fiscal trajectory as a turning point, with reforms providing the foundation for stability, competitiveness, and inclusive growth.
However, he stressed that prudent borrowing, transparent reporting, and effective oversight must be sustained to secure prosperity for future generations.
Akpabio, who was represented by Senator Osita Izunaso, said unchecked debt can mortgage the future of citizens and undermine democracy across the sub-region.
He described parliamentary oversight as indispensable to fiscal stability, noting that when debt is well managed, it serves as a strategic instrument for financing infrastructure, growth, and sustainable development.
He said: “Public debt, when properly managed, is a strategic instrument for financing growth, infrastructure, and sustainable development. However, when left unchecked or shrouded in opacity, it becomes a burden that mortgages the future of our citizens. This is why parliamentary oversight is indispensable.
“The Nigerian experience has shown that when parliamentary committees are empowered by law, transparency is deepened, fiscal responsibility strengthened, and democracy is enriched”.
Abass, who was represented by the House Leader, Prof Julius Ihonvbhere, said Nigeria could leverage responsible borrowing for sustainable development as demonstrated by the Tinubu administration.
“Indeed, public debt, when managed prudently, can be a tool for growth and prosperity. Yet, when left unchecked, it becomes a burden that erodes economic stability and threatens the welfare of future generations”.
He stressed the need for stronger oversight, transparent borrowing practice, and a collective resolve to ensure that tangible economic and social returns match every naira borrowed.
He called on African governments to be mindful of terms and sources of borrowings.
He said: “When we examine the sources of Africa’s external financing, it becomes clear that the weight of debt on our continent is shaped by who we borrow from and on what terms. 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 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.
“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”.
Abbas said if Africa is to grow stronger, the countries must not only negotiate fairer terms of borrowing, but also rethink their 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,” Abass said.
Chairman of the House of Representatives Committee on Public Accounts, Bamidele Salam, said the committee recovered over N200 billion in the last one year.
He said the recoveries were part reforms to strengthen fiscal accountability in Nigeria.
He described the gathering, which Nigeria is hosting for the first time since WAAPAC’s creation in 2009, as timely, given the rising debt burden across Africa.
He said: “While it is widely accepted that public debt remains a vital instrument for financing development, especially in emerging economies, it must remain sustainable, transparent and justifiable. Effective parliamentary oversight is indispensable to ensuring that debt accumulation does not become a pathway to fiscal crisis or an intergenerational problem”.
Highlighting milestones recorded by the Public Accounts Committee, Salam said the committee had, for the first time since Nigeria’s return to democracy in 1999, completed reports that were considered and adopted by the House.
He also noted that the House had passed the long-awaited Audit Bill, which is now before the Senate.
“We look forward to its passage so, this important bill can be transmitted to the President for assent and remove Nigeria from the list of countries without a legal framework for its Supreme Audit Institution,” Salam said.
WAAPAC President, Issouf Traure, urged African countries to work together for the good of the continent.
He commended President Bola Tinubu for his efforts at reviving the economy.
