T he Deputy Speaker of the House of Representatives, Benjamin Kalu, has announced that Nigeria has significantly reduced its debt servicing burden from 96% of revenue in 2023 to 67% within just over a year of President Bola Tinubu’s administration.
Kalu highlighted this achievement at the recently concluded Inter-Parliamentary Union and United Nations General Assembly 2025 Parliamentary Hearing in New York, United States. Themed “Scaling Up Action for the Sustainable Development Goals: Finance, Institutions, and Politics,” the event provided a platform for global discussions on sustainable economic strategies.
A statement issued by Levinus Nwabughiogu, Chief Press Secretary to the Deputy Speaker, quoted Kalu as making these remarks during a session titled “The Debt Crisis and the SDGs: Proposals for Sustainable Solutions.”
Fiscal Space for SDG Investments
According to Kalu, the reduction in debt servicing costs has created fiscal room for critical investments in health, education, and infrastructure—key areas necessary for Nigeria’s commitment to the Sustainable Development Goals (SDGs).
“Nigeria faces a dual crisis: soaring public debt (₦97.34tn / $108bn as of 2024) and constrained fiscal space for SDG investments,” Kalu said. “In 2023, 96% 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 67%.”
Challenges of Global Credit Ratings
Kalu also raised concerns about global credit rating agencies, arguing that biased methodologies have led to inflated borrowing costs for Nigeria, resulting in an estimated $1.5 billion in excess interest payments annually.
“The country’s debt burden delays critical projects such as renewable energy grids and universal healthcare, jeopardizing Nigeria’s commitment to the 2030 Agenda,” he added.
To address this, Kalu noted that the National Assembly is reviewing the Fiscal Responsibility Act to enforce debt ceilings and improve transparency in debt management.
Calls for Global Debt Reforms
Beyond domestic efforts, Nigeria is advocating for global financial reforms, including SDG-linked debt relief and lobbying the International Monetary Fund for SDG Conditional Debt Clauses, which would allow debt payment pauses during crises.
“Nigeria is also calling on OECD nations to criminalize 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 said.
Emphasizing the role of global cooperation in tackling Nigeria’s debt challenges, Kalu stated, “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.”
Legislative Action to Boost Trade and Economic Growth
In another presentation on “International Trade for the SDGs: The Challenge of Poverty Eradication Through Export-led Growth,” Kalu identified key trade challenges facing Nigeria. He noted that non-oil sectors such as agriculture, manufacturing, and technology face tariff and non-tariff barriers, hampering export diversification.
Despite Nigeria’s ratification of the African Continental Free Trade Agreement (AfCFTA), bureaucratic bottlenecks and infrastructure deficits continue to limit competitiveness. Kalu also pointed out that biased arbitration mechanisms deter Nigeria from regulating foreign investors in critical sectors such as mining and technology, posing risks to public welfare.
To counter these challenges, Kalu stated that the House of Representatives has prioritized legislative reforms to diversify exports, streamline business registration, and leverage AfCFTA through Agenda Number 4 in its recently released legislative agenda for 2023-2027.
“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,” he concluded.
With Nigeria’s ongoing fiscal reforms and strategic debt management, the country aims to turn its economic challenges into a foundation for sustainable growth and development.
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