Former Nigerian Bar Association President Dr. Olisa Agbakoba (SAN) has cautioned that if the federal government keeps up its current borrowing pattern without significant fiscal reforms, Nigeria’s total public debt could reach N200 trillion within the next four years.
With a current debt stock of N159.28 trillion, Nigeria’s fiscal sustainability is under scrutiny.
Speaking about the state of the economy, Agbakoba claimed that the government has relied too much on loans rather than utilising domestic resources and attributed the growing debt load to poor revenue generation and fiscal management.
We will surpass N200 trillion in the next four years if borrowing keeps up at this rate. However, if we tighten fiscal policy, we could reach roughly N100 trillion in the next four years, which would lower the amount of borrowing required,” he stated.
He claims that organisations that generate revenue, like the Nigerian National Petroleum Company Limited (NNPC), frequently deduct operating costs before transferring money into the Federation Account.
“They present a budget to appropriate the very money they have retained because they double-spend and deduct, which is against the Constitution.” Thus, over the past ten years, we have lost about $200 trillion.
And we believe that will go on. He declared, “We are not going anywhere.
He maintained that the practice of subtracting expenses prior to remittance restricts the amount of money the government can spend on development and causes opacity in public finance.
Stronger fiscal restraint, he claimed, would boost market confidence and lessen reliance on borrowing.
Agbakoba praised the Central Bank of Nigeria under Governor Olayemi Cardoso while criticising fiscal policy, claiming that exchange rate management has improved in comparison to earlier unstable times.
The exchange rate has been relatively stable since Cardoso took over. He is carrying out his duties. “Fiscal policy is the issue,” he stated.
Agbakoba also demanded changes to Section 162 of the Constitution, which governs the Federation Account, stating that before any deductions are made, all revenues owed to the federation must be paid in full.
“All Federation-owned revenue should be deposited into the Federation Account in gross, without any charges, deductions, or offsets prior to payment,” he stated.
Such reforms, he continued, could greatly increase national revenue and reduce the need for borrowing.
Agbakoba stated that economic management should be a key campaign issue in the general elections of 2027.
“You can see all the noise and clatter as the presidential election approaches, but not a single politician has ever discussed Nigeria’s economic situation. That, in my opinion, is incorrect.
“Therefore, where our money goes needs to be on the ballot in 2027,” he stated.
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