Opposition criticizes National Assembly over N149 trillion debt crisis as FG defends reform measures

Opposition criticizes National Assembly over N149 trillion debt crisis as FG defends reform measures

The Peoples Democratic Party (PDP) has accused the National Assembly and Speaker of the House of Representatives, Tajudeen Abbas, of hypocrisy over his warning on Nigeria’s rising debt, saying he lacks the moral right to complain after approving President Bola Tinubu’s borrowing requests.

PDP Deputy National Youth Leader, Timothy Osadolor, in a chat with reporters in Abuja yesterday, stressed that both Abbas and Senate President Godswill Akpabio were complicit in plunging the country into a N149 trillion debt crisis.

“I am not surprised that Tajudeen Abbas, one of the ‘sidekicks’ of President Bola Ahmed Tinubu, has been complicit in burying the economic fortunes of Nigeria beyond imaginable depth. He himself and his accomplice in borrowing approval, Godswill Akpabio, should bury their heads in shame when issues like this come up,” Osadolor said.

“Tajudeen Abbas cannot, on one hand, approve loans for President Tinubu, and on the other hand, complain that the debt ceiling has been shattered and it is endangering the future generations of this country. If he doesn’t have the moral spine and fibre to tell President Tinubu ‘no’, then he should do the humble thing and resign,” Osadolor said.

The PDP chieftain recalled that under the leadership of former Senate President Bukola Saraki, the National Assembly resisted excessive borrowing by the Buhari administration, unlike the current legislature, which he described as a ‘rubber stamp.’

“I urge him to put the interests of Nigerians first and realise that we cannot continue under this yoke of poverty that this debt is putting us under. Since he has realised that what they are doing is endangering the future of Nigerians, the honourable thing is to apologise and resign,” he said.

The PDP youth leader also accused the ruling party of double-speak, alleging that Abbas’s alarm on debt was an admission that the Tinubu administration had failed.

THE opposition party’s criticism came as Nigeria’s debt burden sparked a clash yesterday between the House of Representatives and the finance ministry, with Speaker Abbas warning of a crisis as debt breaches legal limits, while Minister Edun insists reforms are making borrowing sustainable and the economy more resilient.

While Abbas raised the alarm over the nation’s growing debt, which he said has risen to N149.39 trillion (about $97 billion) in the first quarter of 2025, up from N121.7 trillion the previous year, Edun insisted that Nigeria’s debt profile was becoming sustainable.

Abbas, who warned that the nation’s debt-to-GDP ratio had climbed to 52 per cent, surpassing the 40 per cent statutory limit, urged parliaments across West Africa to strengthen oversight of public borrowing to safeguard the future of their citizens.

The duo spoke at the 11th Annual Conference and General Assembly of the West Africa Association of Public Accounts Committees (WAAPAC), organised by the House of Representatives Public Accounts Committee, with the theme: ‘Strengthening Parliamentary Oversight of Public Debt.’

The alarm raised by the National Assembly comes barely weeks after it approved President Bola Tinubu’s external borrowing plan of over $21 billion for the 2025–2026 fiscal cycle, including $21.19 billion in foreign loans, €4 billion, ¥15 billion, a $65 million grant and domestic borrowing of about N757 billion.

The approval, recommended by both the House and Senate Committee on Local and Foreign Debt, also included provisions to raise up to $2 billion through a foreign-currency-denominated instrument in the domestic market.

“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”, Abbas said.

Warning that Nigeria’s debt profile has reached a critical level, Abbas, represented by the House Leader, Prof Julius Ihonvbhere, said this has breached the nation’s debt limit and signals the strain on fiscal sustainability.

According to the Speaker, the development highlights 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 warned that across Africa, debt has become a structural crisis, with several countries spending more on servicing loans than on healthcare and other essential services.

He highlighted the structure of Africa’s debt, noting that 35 per cent is owed to Western private lenders, 39 per cent to multilateral institutions like the IMF and World Bank, 13 per cent to bilateral creditors, and 12 per cent to China.

The Speaker stressed that borrowing should be targeted at infrastructure, health, education, and job-creating industries, warning that reckless debt that fuels consumption or corruption must be exposed and rejected.”

“Our oversight must also be people-driven. Major borrowing proposals should be subject to public hearings, and simplified debt reports must be made available to the public. Citizens have the right to know, and we have the duty to inform,” he stated.

Later in the day, however, Speaker of the House of Representatives Abbas Tajudeen commended President Tinubu’s efforts to address Nigeria’s public debt through a renewed focus on non-oil revenue generation, stressing that responsible borrowing and prudent debt management can stimulate sustainable growth if properly applied.

A statement from his Special Adviser on Media and Publicity, Musa Abdullahi Krishi, clarified that the Speaker’s remarks were not a rejection of borrowing but rather a call for responsibility. According to him, borrowing must translate into tangible economic and social returns for Nigerians, in line with President Tinubu’s Renewed Hope Agenda, which emphasises fiscal discipline, prudent resource management, and targeted investments in infrastructure, education, green energy, and social welfare.

MEANWHILE, Edun painted a more reassuring picture, declaring that Nigeria was turning the corner under President Bola Tinubu’s reforms.

He said the country’s debt service-to-revenue ratio dropped to about 60 per cent in 2024, while the debt-to-GDP ratio stood at 38.8 per cent, a level he described as comfortable compared to global benchmarks.

Revenues, he added, rose by 34.7 per cent in the first half of 2025.

The Minister acknowledged that Nigeria, like many countries in West Africa, faces significant fiscal challenges, including elevated debt service costs, constrained revenues, and rising demands for public spending.

“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.

Edun credited the gains to tough but necessary policy choices such as the removal of fuel subsidies, liberalisation of the exchange rate, and the roll-out of a comprehensive tax reform programme aimed at boosting efficiency, simplifying compliance, and raising Nigeria’s tax-to-GDP ratio over time.

According to him, these reforms are essential for creating a predictable macroeconomic environment that encourages private investment, which accounts for about 90 per cent of economic activity.

“The government’s role is to act as a catalyst, not to crowd out the private sector. With the right fiscal discipline, we can unlock opportunities and ensure inclusive growth that lifts millions out of poverty,” he said.

On Nigeria’s fiscal direction, the minister outlined priorities including debt transparency, growth-enhancing borrowing, domestic revenue mobilisation, and prudent budgeting within the limits set by the Fiscal Responsibility Act.

He said the government is committed to project-linked borrowing that yields direct returns and avoids reliance on money-printing or unsustainable financing.

Edun also 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 said these challenges underscore the need for African countries to be more self-reliant by embracing reforms, technology, and digitisation to strengthen revenue generation.

The minister 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 such as 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.

He stressed that prudent borrowing, transparent reporting, and effective oversight must be sustained to secure prosperity for future generations.

Senate President Godswill Akpabio urged West African countries to strengthen the constitutional backing for public accounts and finance committees, ensuring transparency, accountability, and sustainability in public debt management.

Represented by Senator Osita Izunaso, Akpabio said unchecked debt can mortgage the future of citizens and undermine democracy across the sub-region.

Akpabio 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.

Chairman of the House of Representatives Committee on Public Accounts, Bamidele Salam, disclosed that the committee recovered over N200 billion in lost revenues for the federal government within the last year.

Salam said the recoveries were part of a series of reforms aimed at strengthening 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.

Unchecked borrowing threatens future generations, CUPP warns
The Coalition of United Political Parties (CUPP) has urged the Speaker of the House of Representatives, Abbas Tajudeen, to take concrete steps to ensure responsible borrowing by the Federal Government.

National Secretary of the CUPP, Chief Peter Ameh, made the appeal in response to recent comments credited to the Speaker expressing concern over Nigeria’s rising debt-to-GDP ratio.

Ameh said the remarks reflected what many stakeholders had long emphasised: that unchecked borrowing could place a heavy burden on future generations.

“This issue is beyond party politics; it is about the future of Nigerians yet unborn. Our hope and prayer is that the Speaker’s concern will translate into tangible action by the House,” he said.

The CUPP urged the National Assembly to carefully scrutinise borrowing requests and ensure they are tied to productive investments that will positively impact the lives of citizens.

According to the group, the legislature has a responsibility to safeguard public interest by promoting fiscal discipline and accountability in the management of national resources.

HURIWA slams Tinubu over fresh borrowing despite revenue claims
The Human Rights Writers Association of Nigeria (HURIWA) has criticised President Bola Tinubu for pushing Nigeria’s debt profile to nearly N187 trillion while still claiming that his government had already surpassed the 2025 revenue target.

Speaking yesterday, HURIWA National Coordinator, Emmanuel Onwubiko, accused the Federal Government of deception and playing mind games with Nigerians after announcing fresh borrowing plans just days after the President boasted that the country had met its revenue projections ahead of schedule.

On September 2, 2025, Tinubu told a delegation of The Buhari Organisation at the Presidential Villa that Nigeria’s revenue mobilisation drive had already exceeded expectations.

The President said, “Today I can stand here before you to brag. Nigeria is not borrowing. We have met our revenue target for the year, and we met it in August.”

According to him, the achievement was driven mainly by improved non-oil revenue, which now accounts for 75 per cent of total collections, alongside a stabilising exchange rate that saw the naira appreciate from over N1,900/$ to about N1,450/$.

But HURIWA expressed shock that barely two days later, on September 4, the Federal Government announced its decision to return to the debt market, despite reporting a record revenue increase.

Figures released by the Presidency showed that total collections from January to August 2025 hit N20.59 trillion, representing a 40.5 per cent surge from the N14.6 trillion collected in the same period in 2024.

Onwubiko, therefore, questioned the government’s sincerity.

“How can you say in the morning that you have overshot the revenue target for the year but in the evening announce that you will be borrowing excessively from external creditors? This is a fallacy of the undistributed middle. The citizens want our government to be very transparent and accountable and to stop playing on the collective psyche of the citizenry,” he lamented.

The rights group stated that the contradiction in the government’s fiscal stance has eroded confidence in its claims of prudent management, insisting that the borrowing spree contradicts Tinubu’s earlier assurances.

“The contradictions inherent in the manner the Federal Government handles foreign borrowing have made it impossible for citizens to even know when the government is telling the truth or not,” Onwubiko stressed.

HURIWA warned that Nigeria’s rising debt profile was not only unsustainable but also crippling the economy. It cited a recent report by Cardinalstone, an investment and research firm, which projected that the country’s debt stock will hit N187.79 trillion by the end of 2025, compared to N153.04 trillion by year-end 2024 and N134.30 trillion as of June 2024.

For context, Nigeria’s total debt stood at N49.85 trillion before the 2023 general elections.

The report attributed the spike to the issuance of dollar-denominated domestic bonds worth $900 billion, regular borrowing through treasury bills and bonds, and Nigeria’s return to the Eurobond market to raise $2.2 billion.

“We estimate government debt to reach N187.79 trillion in 2025. The sharp rise in government debt has heightened concerns about its sustainability,” Cardinalstone analysts said in their report titled “Pressure to Plateau.”

HURIWA also drew attention to the ripple effects of heavy borrowing on critical sectors, pointing to the protest last week by the All Indigenous Contractors Association of Nigeria at the Ministry of Finance headquarters in Abuja.

The contractors demanded payment of nearly N4 trillion for projects executed in 2024 but left unpaid due to low capital releases.

“This contradiction in government policy direction has demonstrated a yawning gap in good governance. It is impracticable for the administration to justify any claim of transparency or accountability while dragging the nation into avoidable indebtedness,” Onwubiko added.

The group called on Tinubu to stop what it characterized as the “reckless buildup of debt” and to ensure that fiscal policies adhere to the principles of accountability, integrity, and public confidence.