Benjamin Kalu reports that under President Bola Tinubu, Nigeria has nearly halved its debt servicing ratio, from 96% to 67% of revenue. This move allows increased investment in essential sectors and aligns with Sustainable Development Goals. Kalu emphasized the need for reforms and global cooperation in debt management, advocating for SDG-linked debt relief and support for African nations.
Deputy Speaker of the House of Representatives, Benjamin Kalu, announced that under President Bola Tinubu, Nigeria has successfully reduced its debt servicing burden from 96% to 67% of the national revenue within a year. This reduction has allowed the Nigerian government to create fiscal space for much-needed investments in health, education, and infrastructure, advancing efforts toward achieving Sustainable Development Goals (SDGs).
Kalu made this announcement during the Inter-Parliamentary Union and UN General Assembly 2025 Parliamentary Hearing in New York, where discussions centered on financing and improving institutions for SDGs. He highlighted that Nigeria is in a dual crisis of high public debt, which stands at ₦97.34 trillion ($108 billion) as of 2024, and limited fiscal capacity for sustainable investments.
He elaborated on the significant impact of the debt situation, stating that in 2023, a staggering 96% of the revenue was allocated for debt servicing. This left minimal budget allocation for essential areas such as health and education. Kalu noted that the Tinubu administration has achieved a notable decrease in this ratio, enabling more resources to be channeled into development activities.
Furthermore, Kalu criticized the biased methodologies of global credit rating agencies that inflate borrowing costs for Nigeria, estimating an annual excess interest payment of around $1.5 billion due to this situation. He underscored that the nation’s debt burden impedes critical projects, such as renewable energy developments and universal healthcare, affecting Nigeria’s commitments under the 2030 Agenda.
In light of these challenges, Kalu mentioned that the National Assembly is reviewing the Fiscal Responsibility Act to establish debt ceilings and enhance financial transparency. He emphasized the legislative body’s focus on reforms to foster sustainable debt management through philanthropy and impact investing linked to SDGs.
Kalu asserted Nigeria’s commitment to the SDGs by aligning its debt management approaches with sustainable development principles. He believes that global cooperation is vital for effectively addressing the debt crisis. This includes advocating for SDG-linked debt relief and encouraging the International Monetary Fund to consider SDG Conditional Debt Clauses, which would facilitate payment rescheduling during crises.
Additionally, Kalu is calling on OECD nations to outlaw litigation from vulture funds targeting low-income countries, while collaborating with the African Union to create an African Credit Rating Agency aimed at providing fairer credit evaluations for African nations. He believes these initiatives will support Nigeria in overcoming its debt challenges.
He stressed the importance of collective action in achieving developmental objectives and the pivotal role the National Assembly can play in addressing the debt crisis. Kalu asserted that institutionalizing debt transparency and promoting fair credit evaluations are crucial steps to transforming Nigeria’s debt situation into a foundation for sustainable growth.
In another session about international trade and poverty eradication, Kalu identified critical barriers for Nigeria, such as trade marginalization and bureaucracy hindering non-oil sectors like agriculture and manufacturing. He pointed out that despite Nigeria’s engagement with the African Continental Free Trade Agreement, structural weaknesses limit its competitiveness.
In response, Kalu declared that the House of Representatives prioritizes legislation designed to enhance export diversification and improve business registration processes, focusing on leveraging AfCFTA for economic growth between 2023-2027. These legislative measures aim to create an enabling environment that encourages investment and collaboration across sectors for sustainable development.
In summary, Nigeria has made significant strides in reducing its debt servicing burden, fostering more financial room for vital investments in key areas like health and education. The Government is committed to aligning its debt management with Sustainable Development Goals and seeks global cooperation to tackle the debt crisis effectively. Legislative reforms and advocacy for fair credit ratings are essential elements of Nigeria’s strategy to achieve sustainable economic development.
Original Source: punchng.com
