Nigeria’s debt servicing lowered from 96% to 67%
President Tinubu
Nigeria’s debt servicing lowered from 96% to 67%.
The Deputy Speaker of the House of Representatives, Benjamin Kalu, has stated that Nigeria, in just over a year under President Bola Tinubu’s leadership, has reduced its debt servicing burden from 96 per cent of 2023 revenue to 67 per cent.
According to Kalu, this significant reduction has created fiscal space for investments in health, education, and infrastructure, which are essential for achieving the Sustainable Development Goals.
Kalu made this remark at the recently concluded Inter-Parliamentary Union and United Nations General Assembly 2025 Parliamentary Hearing in New York, United States. The event’s theme was: “Scaling Up Action for the Sustainable Development Goals: Finance, Institutions, and Politics.”
A statement issued on Sunday by Levinus Nwabughiogu, Chief Press Secretary to the Deputy Speaker, quoted Kalu as making these remarks while delivering a presentation in a session titled “The Debt Crisis and the SDGs: Proposals for Sustainable Solutions.”
He said: “Nigeria faces a dual crisis: soaring public debt (₦97.34tn / $108bn as of 2024) and constrained fiscal space for SDG investments.
“In 2023, 96 per cent of the country’s revenue was spent on debt servicing, limiting budgets for health, education, and infrastructure. However, under President Tinubu’s administration, this debt servicing-to-budget ratio has been significantly reduced to 67per cent.”
Kalu further argued that: “Biased methodologies by global credit rating agencies inflate borrowing costs, causing Nigeria to pay an estimated $1.5bn annually in excess interest.”
He added that the country’s debt burden delays critical projects such as renewable energy grids and universal healthcare, jeopardising Nigeria’s commitment to the 2030 Agenda.
However, he noted that the National Assembly is currently reviewing the Fiscal Responsibility Act to enforce debt ceilings and improve transparency.
“The House of Representatives, through my office, is actively working on reforms to leverage philanthropy and impact investing for SDG-aligned debt management,” he said.
Kalu explained that Nigeria’s debt reduction efforts are driven by its commitment to the SDGs, which aim to end poverty, protect the planet, and ensure global prosperity. He stated that the country has been aligning its debt management practices with the SDGs, making significant progress.
Beyond its domestic efforts, the Deputy Speaker emphasised 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 lobbying the International Monetary Fund for SDG Conditional Debt Clauses, which would allow payment pauses during crises,” he said.
“Nigeria is also calling on OECD nations to criminalise vulture fund litigation against low-income countries. Additionally, we are partnering with the African Union to establish an African Credit Rating Agency to provide more accurate credit ratings for African nations.”
Kalu stressed that global cooperation is essential for tackling Nigeria’s debt challenges, stating: “We believe that collective action is necessary to achieve our development goals. We must work together to create a more equitable and prosperous world for all.”
He also highlighted the role of Nigeria’s National Assembly in addressing the debt crisis, saying:
“The National Assembly is uniquely positioned to model how parliaments can combat the debt-SDG crisis through rigorous oversight, financial sector reforms, and global advocacy.”
“By institutionalising debt transparency, championing fair credit ratings, and innovating SDG-aligned financing, Nigeria can turn its debt burden into a foundation for sustainable development. The IPU in 2025 must amplify these strategies to prevent a lost decade for the SDGs.”
In another presentation on “International Trade for the SDGs: The Challenge of Poverty Eradication Through Export-led Growth, Kalu said that key challenges Nigeria faces include trade marginalisation as non-oil sectors (agriculture, manufacturing, tech) face tariff/non-tariff barriers, stifling export diversification;
He also said that despite ratifying the African Continental Free Trade Agreement, bureaucratic bottlenecks and infrastructure deficits limit Nigeria’s competitiveness, adding that biased arbitration mechanisms deter Nigeria from regulating foreign investors in sectors like mining and tech, risking public welfare.
Kalu, however, said that the House of Representatives has now prioritised laws to diversify exports, streamline business registration, and leverage AfCFTA through agenda number 4 in its recently released legislative agenda for the years 2023-2027.
Tags: Tinubu, Kalu
