By Christiana Ekpa
Nigeria has made a major breakthrough in its efforts to manage its debt, reducing the debt servicing burden from 96% of its 2023 revenue to 67% under the President Bola Tinubu administration.
This significant reduction has created fiscal space for investments in critical sectors such as health, education, and infrastructure, which are essential for achieving the Sustainable Development Goals (SDGs).
The Deputy Speaker of Nigeria’s House of Representatives, Rt. Hon. Benjamin Kalu, who represented the country at the just concluded Inter-Parliamentary Union (IPU) and the United Nations General Assembly (UNGA) 2025 Parliamentary Hearing in New York, United States themed “Scaling Up Action for the Sustainable Development Goals:
Finance, Institutions, and Politics” said that the achievement is a testament to the country’s commitment to sustainable development and debt management.
Making a presentation in one of the sessions tagged “The Debt Crisis and the SDGs: Proposals for Sustainable Solutions”, Kalu highlighted the contributions of the Nigerian Parliament, saying that the legislature has strengthed its oversight roles.
“Nigeria faces a dual crisis: soaring public debt (₦97.34 trillion/$108 billion as of 2024) and constrained fiscal space for SDG investments. Key issues include debt Servicing Burden: 96% of 2023 revenue was spent on debt servicing, crowding out health, education, and infrastructure budgets but the President Tinubu administration significantly reduced this debt servicing to budget ratio to 67%. Credit Rating Challenges: Biased methodologies by global CRAs (e.g., S&P, Moody’s) inflate borrowing costs, costing Nigeria an estimated $1.5 billion annually in excess interest. SDG Trade-offs: Debt pressures delay critical projects like renewable energy grids and universal healthcare, jeopardizing Nigeria’s 2030 Agenda commitments
“The National Assembly is currently reviewing the Fiscal Responsibility Act to enforce debt ceilings and transparency.
“The House of Representatives through my office is actively working on reforms to leverage philanthropy and impact investing for SDG-aligned debt management.
“Strengthening Parliamentary Oversight of Government Debt. Guiding Question: How can parliaments strengthen oversight of government debt?
“To achieve this reduction, we have implemented several measures, including strengthening parliamentary oversight, regulating the financial sector, and promoting innovative financing solutions.
“We are committed to continuing on this path and ensuring that our debt management practices are transparent, accountable, and aligned with our development goals.”
Kalu also explained that Nigeria’s debt reduction efforts have also been driven by its commitment to the SDGs, which aim to end poverty, protect the planet, and ensure peace and prosperity for all.
He added that country has been working to align its debt management practices with the SDGs, and has made significant progress.
In addition to its domestic efforts, the Deputy Speaker said that Nigeria is also seeking global cooperation to address the debt crisis and promote sustainable development.
“The country is advocating for SDG-linked debt relief, and is lobbying the International Monetary Fund (IMF) for SDG Conditional Debt Clauses to allow for payment pauses in times of crisis.
“Nigeria is also calling on OECD nations to criminalize vulture fund litigation against low-income countries, and is partnering with the African Union to establish an African Credit Rating Agency (ACRA) to provide more accurate credit ratings for African countries.
“We believe that global cooperation and collective action are necessary to achieve our development goals and address the debt crisis,” said Deputy Speaker Kalu. “We must work together to create a more equitable and prosperous world for all.”
