Economic analysts have raised concerns over Nigeria’s rising debt profile and lamented the allocation of 25 per cent of the 2025 national budget to debt servicing.
According to them, in the N54.99 trillion 2025 budget, a staggering N14.32 trillion is allocated for debt servicing, an amount that surpasses the combined allocation for critical sectors, including health, education, agriculture, and social welfare.
The stakeholders, who spoke yesterday in Abuja at the National Debt Conference organised by African Network for Economic and Environmental Justice (ANEEJ) and the African Forum and Network on Debt and Development (AFRODAD), also raised concern over the utilisation and management of the loan due to inherent corruption in the nation’s public system.
The Deputy Executive Director of ANEEJ, Leo Atakpu, while speaking at the conference, bemoaned the continued reliance of successive administrations on borrowing from international financial institutions, such as the International Monetary Fund (IMF) and the World Bank, to fund government projects, without adequately considering the long-term economic impact.
He further raised concern over the current debt burden of about $597,238.52billion or N149.38 trillion as of March 31, saying experts had raised the alarm that Nigeria’s debt might become unsustainable given that the country was close to the 40 per cent threshold of Debt-to-GDP ratio.
He also expressed worry over the $18billion being lost to illicit financial flows, saying that according to a recent United Nations Commission for Africa (UNECA) report, Africa loses 590billion yearly to illicit financial flows and another $140 billion to corruption and most of these funds are stashed in safe havens, mostly in Western countries.
While raising concerns over the invasion of the major food belt by bandits, Atakpu alleged that several billions of naira budgeted yearly for arms and ammunition were diverted by corrupt officials in the military and police.
He urged the stakeholders to examine Nigeria’s debt crisis in the lens of reparative justice and identify policy frameworks for advancing debt relief rooted in historical redress and equity.
Saying their plan is to galvanise multi-stakeholder advocacy entry points at national and international levels for debt cancellation, fair debt practices and reparations for historical and systemic injustices that have undermined Nigeria’s growth and development.
In her contribution, former Country Director of Action Aid, Ene Obi, also raised concern over the conditionalities placed by the IMF and World Bank, saying they had impoverished Nigerians. She listed such conditions to include devaluation of the naira and fuel subsidy removal.
