• NES seeks leeway for economy, involvement of subnational government

Nigerian Economic Society (NES) yesterday raised concerns over Africa’s rising debt profile, warning that the continent’s external debt, which stood at about $1.17 trillion in 2024, required $90 billion yearly for servicing.

NES stressed the need for rigorous debt analysis, stronger accountability at sub-national levels, and greater focus on trade and investment as pathways out of Africa’s debt trap.

Speaking ahead of the 66th Annual Conference of the Nigerian Economic Society, scheduled to hold from September 8 to 11, 2025, in Abuja, the President of NES, Adeola Adenikinju, cautioned that while debt was not inherently bad, it was dangerous to exceed sustainable thresholds.
Adenikinju argued that every new borrowing by African governments must be subjected to strict economic tests to determine its implications for growth, stability, and vulnerability before approval.

“It is not enough for the legislature to simply approve every loan request from the executive. We need a framework that rigorously assesses debt proposals, subjecting them to clear metrics of analysis. Only when such tests are passed should borrowing be approved,” he said.

The NES president also emphasised the role of Nigeria’s state governments in economic accountability, stressing that nearly 50 per cent of Nigeria’s economy was driven by subnational activities and that deregulation in the past two years had further increased resources available to the states.

“State chapters of NES must engage their governments on budget allocations and outcomes, asking hard questions about past and current performance. Accountability must be continuous at the end of each quarter and mid-year; citizens and the press must interrogate budget implementation,” Adenikinju stated.

He also urged Nigerian universities to encourage graduate students to research state-level economic issues such as exports, fiscal performance, and resource allocation, rather than focusing narrowly on national debt.

Adenikinju stressed that Africa must look beyond debt and prioritise investment, trade, and regional integration.

Drawing parallels with the United States’ “America First” policy, he argued that Africa must equally put its own interests first by removing barriers to trade and movement across its 54 countries.

“Africa cannot remain fragmented. We are not trading enough among ourselves, nor investing adequately across borders. Breaking down these barriers is essential for transformation,” he said.

The 66th Annual Conference of NES, themed “Rethinking Africa’s Development: Pathways to Economic Transformation and Social Inclusion in a Changing Global Economic Landscape,” will convene scholars, policymakers, development partners, and private sector leaders.

The event, hosted in partnership with the African Development Institute of the AfDB, is expected to be the largest gathering of economists in Nigeria.