Nigeria Has Achieved Significant Debt Reduction Under Tinubu Administration – Kalu
Nigeria has made a major breakthrough in its efforts to manage its debt, reducing the debt servicing burden from 96% of its 2023 revenue to 67% under the President Bola Tinubu administration.
This significant reduction has created fiscal space for investments in critical sectors such as health, education, and infrastructure, which are essential for achieving the Sustainable Development Goals (SDGs).
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The Deputy Speaker of Nigeria’s House of Representatives, Rt. Hon. Benjamin Kalu, who represented the country at the just concluded Inter-Parliamentary Union (IPU) and the United Nations General Assembly (UNGA) 2025 Parliamentary Hearing in New York, United States themed “Scaling Up Action for the Sustainable Development Goals:
Finance, Institutions, and Politics” said that the achievement is a testament to the country’s commitment to sustainable development and debt management.
Making a presentation in one of the sessions tagged “The Debt Crisis and the SDGs: Proposals for Sustainable Solutions”, Kalu highlighted the contributions of the Nigerian Parliament, saying that the legislature has strengthed its oversight roles.
“Nigeria faces a dual crisis: soaring public debt (₦97.34 trillion/$108 billion as of 2024) and constrained fiscal space for SDG investments. Key issues include debt Servicing Burden: 96% of 2023 revenue was spent on debt servicing, crowding out health, education, and infrastructure budgets but the President Tinubu administration significantly reduced this debt servicing to budget ratio to 67%. Credit Rating Challenges: Biased methodologies by global CRAs (e.g., S&P, Moody’s) inflate borrowing costs, costing Nigeria an estimated $1.5 billion annually in excess interest. SDG Trade-offs: Debt pressures delay critical projects like renewable energy grids and universal healthcare, jeopardizing Nigeria’s 2030 Agenda commitments
“The National Assembly is currently reviewing the Fiscal Responsibility Act to enforce debt ceilings and transparency.
“The House of Representatives through my office is actively working on reforms to leverage philanthropy and impact investing for SDG-aligned debt management.
“Strengthening Parliamentary Oversight of Government Debt. Guiding Question: How can parliaments strengthen oversight of government debt?
“To achieve this reduction, we have implemented several measures, including strengthening parliamentary oversight, regulating the financial sector, and promoting innovative financing solutions.
“We are committed to continuing on this path and ensuring that our debt management practices are transparent, accountable, and aligned with our development goals.”
Kalu also explained that Nigeria’s debt reduction efforts have also been driven by its commitment to the SDGs, which aim to end poverty, protect the planet, and ensure peace and prosperity for all.
He added that country has been working to align its debt management practices with the SDGs, and has made significant progress.
In addition to its domestic efforts, the Deputy Speaker said that Nigeria is also seeking global cooperation to address the debt crisis and promote sustainable development.
“The country is advocating for SDG-linked debt relief, and is lobbying the International Monetary Fund (IMF) for SDG Conditional Debt Clauses to allow for payment pauses in times of crisis.
“Nigeria is also calling on OECD nations to criminalize vulture fund litigation against low-income countries, and is partnering with the African Union to establish an African Credit Rating Agency (ACRA) to provide more accurate credit ratings for African countries.
“We believe that global cooperation and collective action are necessary to achieve our development goals and address the debt crisis,” said Deputy Speaker Kalu. “We must work together to create a more equitable and prosperous world for all.
“Nigeria’s National Assembly is uniquely positioned to model how parliaments can combat the debt-SDG crisis through rigorous oversight, financial sector reforms, and global advocacy. By institutionalizing debt transparency, championing fair credit ratings, and innovating SDG-aligned financing, Nigeria can turn its debt burden into a springboard for sustainable development. The IPU in 2025 must amplify these strategies to
avert a lost decade for the SDGs”, he said.
In another presentation on “International Trade for the SDGs: The Challenge of Poverty Eradication Through Export-led Growth, Kalu said that key challenges Nigeria faces include trade marginalization as non-oil sectors (agriculture, manufacturing, tech) face tariff/non-tariff barriers, stifling export diversification;
He also said that despite ratifying the African Continental Free Trade Agreement (AfCFTA), bureaucratic bottlenecks and infrastructure deficits limit Nigeria’s competitiveness, adding that biased arbitration mechanisms deter Nigeria from regulating foreign investors in sectors like mining and tech, risking public welfare.
Kalu however said that the House of Representatives has now prioritized laws to diversify exports, streamline business registration, and leverage AfCFTA through agenda number 4 in its recently released legislative agenda for the years 2023-2027.
He further explained that the 2023 Finance Act introduced tax breaks for agro-processing and renewable energy exports to align trade with SDGs 1 (poverty) and 9 (industry).
On trade and digital economy, the Deputy Speaker said “House of Representatives through my office is working closely with META and AfriLabs to generate
legislative interventions that provide incentives or exemptions from digital service taxes on Nigerian tech platforms to enable more trade on digital platforms in the country while still meeting Nigeria’s domestic revenue generation targets”.
On yet another presentation titled “Raising domestic resources for the SDGs: A Case for Tax Reforms” made at the forum, Kalu submitted that Nigeria’s renewed focus on expanding and mobilizing domestic public resources is central to achieving the 2030 Agenda.
According to him, robust tax systems underpin investments in critical public goods—such as infrastructure, health, and education—which in turn drive poverty reduction, economic growth, and increased public trust.
He also highlighted some recent legislative developments in Nigeria, applauding the recent passage of four tax bills to second reading in the House of Representatives.
“In 2024, President Bola Ahmed Tinubu transmitted four key tax reform bills to the National Assembly: Nigeria Tax Bill 2024, Nigeria Tax Administration Bill, Nigeria Revenue Service (Establishment) Bill and Joint Revenue Board (Establishment) Bill.
“These proposals seek to modernize tax administration by harmonizing taxes, consolidating revenue agencies, and integrating advanced technology for enhanced compliance. The green chamber of Nigeria’s National Assembly, the House of Representatives recently passed the four tax reform bills for a second reading and have been referred to the Finance Committee of the House for further legislative work.
“Nigeria’s proactive approach to tax reform—through centralized tax collection, comprehensive VAT modifications, and broader international cooperation—positions the country to better mobilize domestic resources in support of the SDGs.
“While the reform proposals present significant opportunities for enhanced fiscal sustainability, their successful implementation requires rigorous oversight and transparent governance, investment in technological and human capacity, and a alanced approach to innovative taxes that considers both revenue needs and economic equity.
“By addressing these challenges, Nigeria can set a robust precedent for transforming domestic tax systems into engines of sustainable development and fiscal resilience and this precedent can be adopted by other IPU member countries (parliaments)”, Kalu said.