BREAKING: Speaker Abbas raises alarm over Nigeria’s debt crisis

Speaker of the House of Representatives, Abbas Tajudeen, has sounded the alarm over Nigeria’s mounting debt, cautioning that the nation has surpassed its legal borrowing threshold and faces serious risks to fiscal stability.

Delivering his remarks on Monday at the opening of the 11th Annual Conference and General Assembly of the West Africa Association of Public Accounts Committees (WAAPAC) in Abuja, Abbas described the country’s debt situation as “a critical point” and urged immediate reforms to strengthen oversight and transparency.

“As at the first quarter of 2025, Nigeria’s total public debt stood at N149.39 trillion, equivalent to about US$97 billion. This represents a sharp rise from N121.7 trillion the previous year, underscoring how quickly the burden has grown. Even more concerning is the debt-to-GDP ratio, which now stands at roughly 52 percent, well above the statutory ceiling of 40 percent set by our own laws,” he said.

The Speaker stressed that breaching the debt limit was “a signal of strain on fiscal sustainability,” adding that “stronger oversight, transparent borrowing practices, and a collective resolve” are essential to ensure borrowed funds deliver real economic and social value.

Abbas also warned that the debt crisis is not unique to Nigeria, noting that many African nations are already spending more on loan servicing than on healthcare and essential services. “This is not just a budgetary concern, but a structural crisis that demands urgent parliamentary attention and coordinated reform,” he said.

To tackle the challenge, Abbas announced Nigeria’s readiness to spearhead the creation of a West African Parliamentary Debt Oversight Framework through WAAPAC. The initiative, he explained, will standardise debt reporting across the sub-region, set transparency benchmarks, and provide parliaments with timely data to scrutinise borrowing.

He further revealed plans for a regional capacity-building programme for Public Accounts and Finance Committees to strengthen debt sustainability analysis and fiscal risk management.

Emphasising that loans should be channelled into critical sectors, Abbas stated: “Borrowing should support infrastructure, health, education, and industries that create jobs and reduce poverty. Reckless debt that fuels consumption or corruption must be exposed and rejected. Oversight is not just about figures, but about the lives and futures behind those figures.”

The Speaker reaffirmed the commitment of the 10th House to accountability, pledging that under its Open Parliament policy, borrowing proposals would undergo public hearings, with simplified debt reports made accessible to citizens.

This year’s WAAPAC conference, attended by lawmakers, financial experts, and development partners across West Africa, is themed “Strengthening Parliamentary Oversight of Public Debt: The Role of Finance and Public Accounts Committees.” Abbas urged delegates to take the deliberations seriously, saying their resolutions would be vital in reinforcing fiscal responsibility and accountability across the continent.