By Christiana Ekpa
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said Nigeria’s bold economic reforms are beginning to yield results, with debt levels becoming more sustainable and investor confidence returning.
Edun said this at the 11th Annual Conference and General Assembly of the West Africa Association of Public Accounts Committees (WAAPAC), organised by the House of Representatives Public Accounts Committee on Monday, which had as its theme: “Strengthening Parliamentary Oversight of Public Debt.”
The Minister acknowledged that Nigeria, like many countries in West Africa, faces significant fiscal challenges, including elevated debt service costs, constrained revenues, and rising demands for public spending.
But he maintained that reforms implemented under President Bola Ahmed Tinubu are reversing negative trends and setting the country on a sustainable growth path.
“Nigeria is turning the corner. The reforms are delivering measurable impact in terms of investor confidence, reduced spending on fuel imports, greater energy self-sufficiency, and value addition in our economy,” Edun said.
He disclosed that Nigeria’s debt service-to-revenue ratio had dropped to about 60 percent in 2024, while the debt-to-GDP ratio stands at 38.8 percent, which he described as a comfortable level compared to global benchmarks.
Revenues, he added, grew by 34.7 percent in the first half of 2025 compared with the same period last year, expanding fiscal space for investment in priority sectors.
Edun credited the gains to tough but necessary policy choices such as the removal of fuel subsidies, liberalization of the exchange rate, and the roll-out of a comprehensive tax reform programme aimed at boosting efficiency, simplifying compliance, and raising Nigeria’s tax-to-GDP ratio over time.
According to him, these reforms are essential for creating a predictable macroeconomic environment that encourages private investment, which accounts for about 90 percent of economic activity.
“Government’s role is to act as a catalyst, not to crowd out the private sector. With the right fiscal discipline, we can unlock opportunities and ensure inclusive growth that lifts millions out of poverty,” he said.
On Nigeria’s fiscal direction, the minister outlined priorities including debt transparency, growth-enhancing borrowing, domestic revenue mobilisation, and prudent budgeting within the limits set by the Fiscal Responsibility Act.
He said the government is committed to project-linked borrowing that yields direct returns and avoids reliance on money-printing or unsustainable financing.
Edun also drew attention to global headwinds, such as shrinking development aid, reduced world trade, and rising international interest rates, that have made fiscal management more difficult for developing economies.
He said these challenges underscore the need for African countries to be more self-reliant by embracing reforms, technology, and digitization to strengthen revenue generation.
Crucially, the minister emphasised that parliamentary oversight is central to maintaining fiscal discipline.
He urged lawmakers to hold governments accountable for borrowing and spending decisions, insisting that transparency and accountability must underpin every fiscal framework.
“A sound fiscal framework is not just the responsibility of the executive; it demands partnership, leadership, and rigorous oversight from parliamentarians such as you, especially public accounts and finance committees,” Edun said.
He described Nigeria’s fiscal trajectory as a turning point, with reforms providing the foundation for stability, competitiveness, and inclusive growth.
However, he stressed that prudent borrowing, transparent reporting, and effective oversight must be sustained to secure prosperity for future generations.
Senate President Godswill Akpabio called on West African countries to strengthen constitutional backing for public accounts and finance committees in order to guarantee transparency, accountability, and sustainability in public debt management.
Represented by Senator Osita Izunaso, Akpabio said unchecked debt can mortgage the future of citizens and undermine democracy across the sub-region.
Akpabio described parliamentary oversight as indispensable to fiscal stability, noting that when debt is well managed, it serves as a strategic instrument for financing infrastructure, growth, and sustainable development.
“Public debt, when properly managed, is a strategic instrument for financing growth, infrastructure, and sustainable development. However, when left unchecked or shrouded in opacity, it becomes a burden that mortgages the future of our citizens. This is why parliamentary oversight is indispensable,” he said.
Akpabio urged all WAAPAC member nations to provide legislative or constitutional authority for such committees, saying this would guarantee their independence and effectiveness in protecting public resources.
“The Nigerian experience has shown that when parliamentary committees are empowered by law, transparency is deepened, fiscal responsibility is strengthened, and democracy is enriched,” he said.
He stressed that Africa’s progress depends on building strong institutions rather than relying on strong individuals, adding that collective responsibility must take precedence over personal ambition.
The Senate President assured the gathering that Nigeria remains committed to working with regional and international partners to strengthen parliamentary institutions, promote fiscal responsibility, and safeguard nations from the risks of unsustainable debt.
