ActionAid Nigeria has raised alarm over the nation’s ballooning public debt, which has surged to an unprecedented ₦134.297 trillion as of June 2024, equivalent to a debt burden of ₦620,000 per citizen. The organization is urging immediate fiscal reforms to avert a full-blown economic crisis.
In a statement signed by Country Director Andrew Mamedu, ActionAid highlighted the unsustainable trajectory of Nigeria’s debt, which grew by nearly ₦13 trillion in three months—a rate of 11%. The rising debt-to-GDP ratio, now exceeding 50%, and a high debt service-to-revenue ratio threaten critical investments in healthcare, education, and poverty alleviation.
“The removal of the fuel subsidy was meant to free resources and reduce borrowing, yet the debt continues to rise. Without transparency and accountability in managing these funds, the financial situation could deteriorate further,” Mamedu stated.
ActionAid recommends reducing allowances for high-ranking officials and overhauling fiscal policies to prioritize social services and progressive taxation. The group also emphasized the need for efficient resource allocation, urging the government to invest directly in programs that benefit Nigeria’s most vulnerable populations.
The statement underscored the urgency of fiscal reforms, warning that continued borrowing without addressing systemic inefficiencies and mismanagement risks plunging Nigeria into deeper economic instability. ActionAid reaffirmed its commitment to advocating for policies that promote equity, inclusivity, and sustainable development.
