Deputy Speaker of the House of Representatives, Benjamin Kalu, has disclosed that President Bola Tinubu has reduced the debt servicing burden from 96% of the 2023 revenue to 67%.
The lawmaker made the disclosure on Sunday while speaking at the recently concluded Inter-Parliamentary Union (IPU) and 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.”
He asserted that the achievement is a testament to the country’s commitment to sustainable development and debt management.
According to him, the 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).
He said, “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, jeopardising 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.”
Hon. Kalu also explained that Nigeria’s debt reduction efforts have been driven by its commitment to the SDGs, which aim to end poverty, protect the planet, and ensure peace and prosperity for all.
