*As IBP tasks FG on public participation in processes

Nigeria has been rated low in transparency, accountability, oversight and public participation in national budget by the Open Budget Survey (OBS) 2025.

Nigeria’s assessment based on publicly available information from January 1, 2023, to December 31, 2024, indicated that four key areas, such as legal and institutional framework, debt transparency, debt oversight and public participation, do not yet work in a way that makes debt accountability clear, consistent and accessible.

MEANWHILE, the International Budget Partnership (IBP) Nigeria has called on the Federal Government to ensure transparency, accountability and public participation in Nigeria’s debt management processes.

Country Director of the IBP, Nigeria, Olayinka Babalola, said that accountability and transparency in government dealings, especially concerning debt management, are essential to building public trust in the government
She stated this at a meeting on the findings of the OBS 2025, the debt accountability module for Nigeria, on Tuesday in Abuja.

According to her, the assessment revealed that public participation in debt management was very weak, and the connection between borrowing and visible outcomes for citizens remained weak and often unclear, thereby triggering distrust and suspicion

Babalola revealed that the survey highlighted important gaps in transparency, oversight and public participation in the management of Nigeria’s public debt.

She further said there was very little evidence of structured opportunities for the public, civil society, media or other stakeholders to engage, specifically on borrowing plans, debt levels or fiscal deficits, before key decisions are concluded by the government, making these processes unaccountable to the people.

She pointed that “Public debt is no longer just a technical issue for economists, debt managers or government officials. It has become a public issue.

“It affects fiscal space, service delivery, trust in public institutions, and ultimately the ability of citizens to understand how government borrowing decisions affect their lives”.

Babalola explained that the Open Budget Survey is the World’s only comparative, independent and regular assessment of transparency, oversight and participation in national budgets.

“It is widely used to assess whether budget systems provide the information and accountability conditions needed for public scrutiny.

“The debt accountability module is a pilot extension of our work. It was developed because debt has become an increasingly important part of fiscal policy in many countries, including Nigeria,” she said.

She continued, “But the accountability side of debt management is often less visible than the numbers themselves. In other words, it’s one thing to know how much a country has borrowed.

“It’s another thing entirely to know whether there are sufficient systems in place for that borrowing to be transparent, properly overseen and open to public accountability”.

She said, looking at the parameters, the assessment examined four key areas, such as the legal and institutional framework, debt transparency, debt oversight and public participation.

The country director said that although Nigeria has these four key structures, the system does not yet work in a way that makes debt accountability clear, consistent and accessible.

In asserted that “There are public documents, and we also have formal rules for the legislature and the auditor general. So this is not a story of complete absence.”

Babalola said that debt information was not presented in a single accessible way that allows citizens, legislators, journalists or analysts to clearly see what is being borrowed on what terms and for what intended purpose. Therefore, the process does not fully support accountability, adding that oversight was stronger in law than in practice.

“The National Assembly has a formal rule in approving domestic borrowing and external loans. The Office of the Auditor General has the authority to examine debt-related transactions.

“For in practice, there is limited publicly available evidence of detailed legislative review of debt strategy during the budget process, and all this attention is stronger on financial and compliance issues than on broader debt management performance among others,” she said.

She submitted that said the Nigeria’s debt accountability challenge was not just about whether information exists, it’s about whether the system makes borrowing understandable, traceable, properly scrutinized and open to public engagement.

The IBP highlights three priority areas for reform, including transparency, oversight and participation, stating that Nigeria needs more practical and consolidated disclosure of borrowing information.

Babalola concluded that if public debt is shaping the country’s fiscal future, then there must be clearer and earlier opportunities for citizens and stakeholders to engage on borrowing funds, debt levels and fiscal trade-offs before key decisions are finalized.

“The real issue is not only how much is borrowed, the real issue is whether borrowing decisions are governed in ways that are transparent, accountable and connected to public interest,” observed the Senior Programme Coordinator, Strategy and Policy, IBP, Onyekachi Chukwu.

He said every country borrows, but there is need to borrow responsibly.

The OBS is adjudged the world’s only comparative, independent and regular assessment of transparency, oversight and budget system participation of governments