Major Economic Milestone! Tinubu’s Administration Eases Nigeria’s Debt Pressure

Speaking on Sunday at the Inter-Parliamentary Union (IPU) and United Nations General Assembly (UNGA) 2025 Parliamentary Hearing in New York, themed “Scaling Up Action for the Sustainable Development Goals: Finance, Institutions, and Politics,” Kalu emphasized that this achievement underscores Nigeria’s commitment to sustainable development and responsible debt management.

According to him, the significant reduction has created fiscal space for critical investments in key sectors such as health, education, and infrastructure—essential for achieving the Sustainable Development Goals (SDGs).

He stated, “Nigeria faces a dual crisis: a soaring public debt of ₦97.34 trillion ($108 billion as of 2024) and limited fiscal space for SDG-related investments. In 2023, 96% of the country’s revenue was spent on debt servicing, restricting funds for essential sectors. However, under President Tinubu, this debt servicing-to-budget ratio has been significantly reduced to 67%.

Kalu further highlighted the challenges posed by global credit rating agencies (CRAs), such as S&P and Moody’s, whose rating methodologies increase Nigeria’s borrowing costs by an estimated $1.5 billion annually. He also warned that debt pressures threaten key SDG projects, including renewable energy initiatives and universal healthcare.

To address these challenges, Kalu disclosed that the National Assembly is reviewing the Fiscal Responsibility Act to enforce debt ceilings and transparency. Additionally, the House of Representatives, through his office, is advancing reforms to leverage philanthropy and impact investing for SDG-aligned debt management.

“We have implemented strategic measures such as strengthening parliamentary oversight, regulating the financial sector, and promoting innovative financing solutions. Our goal is to ensure that Nigeria’s debt management remains transparent, accountable, and aligned with our development objectives,” he added.

Kalu concluded by reiterating that Nigeria’s debt reduction strategy is part of a broader commitment to the SDGs, which seek to eradicate poverty, safeguard the environment, and foster long-term prosperity.