Contrary to mounting opposition by a cross section of Nigerians to the borrowing binge of the President Bola Tinubu administration, the Speaker of the House of Representatives, Abbas Tajudeen, has maintained that the National Assembly (NASS) is not opposed to government’s borrowing policy.
By Emma Ogbuehi
Contrary to mounting opposition by a cross section of Nigerians to the borrowing binge of the President Bola Tinubu administration, the Speaker of the House of Representatives, Abbas Tajudeen, has maintained that the National Assembly (NASS) is not opposed to government’s borrowing policy. Rather, Abbas insisted that lawmakers support borrowing as a legitimate tool for funding infrastructure and driving sustainable growth.
The Speaker made the clarification on Monday in Abuja while delivering the keynote address at the 8th Annual African Network of Parliamentary Budget Offices Conference, organised by the National Assembly in partnership with the National Assembly Budget and Research Office.
The theme of the event was, “The Role of PBOs in African Parliaments’ Fiscal Oversight: Contribution to the African 2063 Development Agenda.”
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The legislative endorsement for the government came on the heels of strong criticisms by informed Nigerians on the unrestrained loan accumulation by the administration. Labour Party (LP)’s presidential candidate in the 2023 general election, Peter Obi, has been consistent in decrying what he describes as Tinubu administration’s penchant for reckless borrowing without accountability. Obi raised the fresh alert in response to the latest external borrowing plan approved by the Senate.
The Nigerian Senate had approved another external borrowing of $21 billion, €2.2 billion, and ¥15 billion for the 2025–2026 fiscal cycle. The former Anambra State governor noted that with the latest approval, Nigeria’s debt now stands at N187 trillion with palpable fear that it might climb to N200 trillion before the end of the year.
Following the apprehension by Nigerians on the rising loan threshold, there were reports in the media suggesting that the legislature was uncomfortable with the administration’s debt strategy, particularly after concerns were raised at the 11th Annual Conference of the West Africa Association of Public Accounts Committees, where Nigeria’s debt-to-GDP ratio of 52 per cent — above the 40 per cent statutory threshold — was highlighted.
Abbas said the reports misrepresented the House’s position, stressing that a speech delivered by the House Leader at the West Africa Parliamentary Conference was mischievously reported out of context, creating the wrong impression that the House of Representatives rejects President Tinubu’s borrowing plan. “Such an interpretation is inaccurate and misleading,” he said.
The Speaker stressed that borrowing, when carefully applied, remains a globally recognized fiscal instrument. He explained that the President had assured parliament that new loans would remain within the country’s medium-term debt framework and international best practices.
According to him, proceeds from fresh borrowings are being channelled into priority sectors such as power, transportation, and agriculture — areas expected to boost productivity, expand revenue, and reduce poverty.
Abbas stated that the House is solidly behind the President’s vision of deploying judicious borrowing as a catalyst for development and poverty alleviation, while it strengthens parliamentary oversight.
The Speaker also drew attention to Africa’s fiscal vulnerabilities, warning that Nigeria loses about $18 billion annually to financial crimes — nearly 3.8 per cent of its GDP. Across the continent, the figure stands at $587 billion, driven largely by corruption, illicit financial flows, and systemic inefficiencies.
“These leakages undermine our ability to deliver social services. If properly harnessed, these resources could transform education, healthcare, and infrastructure in Africa,” he said.
Abbas added that with Africa’s population now at 1.4 billion — one-sixth of the global total — Nigeria must take the lead in steering the continent toward sustainable growth.
He noted that Nigeria’s GDP stood at $477bn in 2022 but warned that entrenched poverty, high youth unemployment, and sluggish job creation could push the continent into crisis if unaddressed.
In a goodwill message, AN-PBO Chairperson, Prof. Dumisani Jantjies, commended Nigeria for pursuing tough economic reforms that delivered a 3.4 per cent growth rate in 2024 — the strongest in a decade. However, he cautioned that inflationary pressures and rising poverty remained major threats.
Jantjies stressed the importance of strong Parliamentary Budget Offices across Africa, describing them as “indispensable” to fiscal transparency, accountability, and ensuring public resources align with the AU’s Agenda 2063 blueprint for “the Africa we want.”
The Abuja conference provided a platform for African parliaments to exchange experiences and strengthen oversight tools to meet the continent’s long-term development goals.
