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Nigeria’s debt may hit N200trn, Agbakoba warns - DAILY TRUST
By Dotun Omisakin, Lagos
Nigeria’s total public debt could rise to N200 trillion within the next four years if the federal government continues its current borrowing pattern without major fiscal reforms, former Nigerian Bar Association President, Dr. Olisa Agbakoba (SAN) has warned.
Nigeria’s debt stock currently stands at N159.28 trillion, raising concerns over the country’s fiscal sustainability.
Speaking on the state of the economy, Agbakoba blamed the rising debt burden on weak revenue generation and poor fiscal management, arguing that the government has relied too heavily on loans instead of unlocking domestic resources.
“If borrowing continues at this level, in the next four years, we will top N200 trillion. But if we tighten fiscal policy, then in the next four years, we could end at about N100 trillion, reducing the need to borrow,” he said.
Agbakoba said Nigeria’s debt crisis is being worsened by systemic leakages in how government revenues are collected and remitted, particularly by state-owned enterprises and ministries.
According to him, agencies such as the Nigerian National Petroleum Company Limited (NNPC) and other revenue-generating institutions often deduct operating expenses before remitting funds into the Federation Account.
“Because they double-spend, they deduct, contrary to the Constitution, then they still present a budget to appropriate the very monies they have kept. So we have lost like 200 trillion in the last 10 years.
“And we feel that is going to continue. We are not going to go anywhere,” he said.
He argued that the practice of deducting costs before remittance creates opacity in public finance and limits the amount available to the government for development spending.
He said stronger fiscal discipline would improve market confidence and reduce dependence on borrowing.
While criticising fiscal policy, Agbakoba praised the Central Bank of Nigeria under Governor Olayemi Cardoso, saying exchange rate management has improved compared to previous periods of instability.
“Since Cardoso came in, the exchange rate has been fairly stable. He is doing his job. The problem is fiscal policy,” he said.
Agbakoba also called for reforms to Section 162 of the Constitution which governs the Federation Account, saying all revenues due to the federation should be paid in full before any deductions are made.
“All revenues that belong to the Federation should be paid into the Federation Account in gross, with no deductions, charges, or offsets before payment,” he said.
He added that such reforms could significantly boost national revenue and lower borrowing needs.
Looking ahead to the 2027 general elections, Agbakoba said economic management should become a major campaign issue.
“As the presidential election looms, you can see all the clatter and all the noise, but not a single politician has ever talked about the state of Nigeria’s economy. I think that is not right.
“So in 2027, where our money goes must be on the ballot,” he said.
