From Femi Mustaph, in Kaduna
The Executive Director of the African Forum and Network on Debt and Development (AFRODAD), Jason Braganza, has stated that Nigeria and other developing countries are currently facing a severe debt crisis, which has escalated into a humanitarian crisis.
He made these remarks during a National Debt Conference organized by the Africa Network for Environment and Economic Justice (ANEEJ) in collaboration with AFRODAD in Abuja today, Wednesday July 9.
Represented by Diana Mochoge, the Policy Research and Advocacy Officer of AFRODAD, Mr. Braganza referenced the International Debt Report, which highlights a growing debt-related risk for all developing nations.
He emphasized the need for a comprehensive approach to reduce debt, increase transparency, and expedite restructuring efforts so that countries can focus on spending that promotes growth and alleviates poverty.
Braganza pointed out that the poorest countries eligible to borrow from the International Development Association are now spending over 10% of their export revenues to service their long-term public and publicly guaranteed external debt.
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He warned that the current debt crisis across the African continent is rapidly transforming into a humanitarian crisis.
He urged the Nigerian government to conduct an immediate debt audit to ascertain the total amount owed and explore ways to mitigate it.
In response, the Minister of Budget and Planning, Alhaji Atiku Bagudu, noted that Nigeria, like many African nations, is grappling with a public debt burden that has significant implications for the economy, development, and national sovereignty.
Represented by Olatunde Oniyanda, a director in the ministry, he lamented that Nigeria’s public debt has significantly increased over the last decade.
As of now, Nigeria’s debt-to-GDP ratio remains within moderate thresholds, but this figure obscures the pressures of rising debt servicing costs, foreign exchange challenges, and limited fiscal space.
The minister noted that in recent years, the debt service-to-revenue ratio has sometimes exceeded 90%, severely constraining the country’s ability to invest in essential areas such as infrastructure, education, healthcare, and climate resilience, all vital to lifting millions of Nigerians out of poverty.
He stressed that debt should be a tool for development, not a trap that perpetuates underdevelopment. He remarked that the current administration has redefined this narrative, aligning borrowings with development projects designed for sustainable repayment.
He advocated for a new paradigm where debt relief is viewed not as charity but as a matter of justice. He called on conference participants to ensure that the repatriation of stolen assets and funds forms part of a broader reparative agenda.
“Reparative justice can take many forms: from full or partial debt cancellation to concessional refinancing, to ‘debt-for-development’ swaps, where debt is redirected into national priorities like education, healthcare, or climate action.
This conference presents a unique opportunity not only to discuss and debate but also to build consensus for collective advocacy.
In his opening address, Rev. David Ugolor, Executive Director of ANEEJ, expressed outrage that Nigeria loses nearly $18 billion annually to illicit financial crimes, including bribery, internet fraud, and tax evasion.
Represented by Comrade Leo Atakpu, the Deputy Executive Director of the Network, he noted that the Debt Management Office (DMO) reported Nigeria’s total public debt as of March 31, 2025, at $97.24 billion, or approximately 38 trillion Naira.
Ugolor underscored that experts have raised alarms that Nigeria’s debt may become unsustainable as the country nears the 40% threshold of the debt-to-GDP ratio.
He criticized past and present governments for relying on borrowing from the IMF and World Bank to finance projects without considering the adverse effects on the economy.
In the 2025 budget of 54.99 trillion Naira, 14.32 trillion Naira, or 26% of the budget, is allocated for debt servicing, surpassing the combined budget for health, education, agriculture, and social welfare.
He lamented that the management and utilization of these loan facilities often fall short due to rampant corruption within the public system.
At the conference, Comrade Atakpu explained that the theme for this year’s conference was “Nigeria’s Rising Debt: Advancing Debt Relief through Reparations and Reparative Justice.”
He noted that this theme aligns strategically with the African Union’s focus for 2025 on “Justice for Africans and People of African Descent through Reparations,” aimed at addressing historical injustices rooted in colonialism, the slave trade, illicit financial flows, and climate injustice.
Comrade Atakpu also mentioned that the conference will contribute to this year’s AfCoDD V event, scheduled to take place in Accra, Ghana, from August 27-29, 2025, under the theme: “Reparations and Reparative Justice for an African Future.”
