…say responsible loans will drive infrastructure, growth
…Nigeria loses $18bn yearly to financial crimes
By Gloria Ikibah 
The Speaker House of Representatives, Rt. Hon. Tajudeen Abbas, has reaffirmed the support of the 10th House for President Bola Tinubu’s borrowing plans, insisting that strategic loans are necessary to fund critical infrastructure and stimulate economic growth.
The Speaker who stated this at the 8th Annual African Network of Parliamentary Budget Offices (AN-PBO) Conference, said recent reports misrepresented the House’s stance on government borrowing.
He stressed that while Nigeria’s debt profile remains a concern, the legislature has always supported responsible and targeted borrowing as a tool for national development.
“Borrowing, when done strategically, is a vital fiscal instrument. Nigeria must, at times, leverage credit to finance essential infrastructure, spur economic expansion, and protect vulnerable citizens,” Abbas explained.
The Speaker also assured that loans taken under the current administration would be transparent, sustainable, and consistent with both Nigeria’s medium-term debt strategy and international best practice.
The conference which was hosted by the National Assembly in partnership with NABRO, is theme: “The Role of PBOs in African Parliaments’ Fiscal Oversights: Contribution to the African 2063 Development Agenda.”
Abbas referenced the remarks he made earlier this year at the West Africa Association of Public Accounts Committees (WAAPAC) assembly, where he cautioned that Nigeria’s debt-to-GDP ratio had risen to 52 per cent, surpassing the 40 per cent statutory benchmark. He clarified, however, that his comments were a call for stronger oversight, not opposition to borrowing.
He further lamented that Nigeria loses an estimated $18 billion annually to financial crimes, describing it as a drain that undermines development efforts. Abbas urged parliaments across Africa to intensify fiscal scrutiny and adopt innovative approaches to safeguard public resources.
He said: “Recently, a speech delivered by the House leader at the West Africa Parliamentary Conference was horrendously and mischievously reported out of context, creating the false impression that the House of Representatives does not support the borrowing strategy of President Tinubu administration. We should state clearly that this interpretation is both inaccurate and misleading.
“The House and indeed the National Assembly have consistently affirmed that in the face of present developmental needs, strategic and responsible borrowing is an essential fiscal tool. Like every modern economy, Nigeria most sometimes liberates credit to finance critical infrastructure. Stimulate growth and protect vulnerable populations.
“What is important and what the President has assured is that all borrowings remain targeted, transparent and sustainable, consistent with Nigeria’s medium term debt strategy and guided by global best practices.
“Under our President’s leadership, borrowed forms are being channeled towards transformative projects that will expand revenue generating capacity, such as power, transport and agriculture, rather than for consumption.
“The House stands firmly behind the President’s vision of using judicial borrowing as a catalyst for growth and poverty reduction, while simultaneously strengthening oversight mechanisms”.
Revealing that Nigeria forfeits an estimated $18 billion each year to financial crimes — about 3.8 per cent of its GDP — the Speaker underscored the pressing need for stronger parliamentary oversight to protect public funds.
He further cautioned that, across Africa, losses from corruption, illicit financial flows and systemic inefficiencies amount to more than $587 billion annually, a figure he described as deeply alarming.
Abbas said: “Africa is at the crucial crossroads in its history, with a population of approximately 1.4 billion people, roughly one-sixth of humanity. Our continent is young, growing and breathing with potentials. Nigeria, as Africa’s most populous nation, with over 200 million people and a GDP of around $477 billion in 2022, carries a special responsibility in this African story.
“We are a continent of abundant resources and talented youth, and we have bold ambitions captured in the African Union Agenda 2063, which serves as the blueprint for the Africa we want. However, the path to realizing this vision remains difficult. Economic growth in sub-Saharan Africa is recovery, although modestly, with the World Bank projecting an increase from 3.3 per cent in 2024 to 3.5 per cent in 2025.
“This is indeed encouraging, but it is not yet sufficient to meet our development needs. Poverty remains widespread. An estimated 464 million Africans live in extreme poverty as of 2024. Unemployment and underemployment, especially among young people, are urgent issues.
“Each year, 12 million young Africans enter the labor markets, yet only around 3 million formal jobs are created. This gap in opportunities highlights a potential demographic dividend that could turn into a demographic risk if we do not take action”,
He pointed out that, if properly harnessed, such lost funds could be redirected towards strengthening social infrastructure, including the provision of better schools across Africa.
In his remarks, the Chairperson of the African Network of Parliamentary Budget Offices (AN-PBO), Professor Dumisani Jantjies, cautioned that the continent’s economies remain highly exposed to external shocks, from volatile capital flows and global trade disruptions to the mounting effects of climate change.
Professor Jantjies highlighted the growing role of Parliamentary Budget Offices (PBOs) as vital mechanisms for fiscal transparency, policy accountability, and ensuring that national priorities are aligned with Africa’s long-term development agenda.
He acknowledged Nigeria’s recent macroeconomic reforms, noting that growth climbed to 3.4 per cent in 2024, the highest in ten years. However, he warned that persistent inflation and widespread poverty continue to pose significant challenges.
“Our mandate is to provide legislatures with credible, non-partisan, evidence-based analysis to enable informed fiscal decisions,” he said.
