The Centre for Social Justice has urged political parties and presidential candidates to make fiscal discipline, transparent public borrowing and strict enforcement of statutory debt limits key commitments in their manifestoes ahead of Nigeria’s next political transition.
The centre warned that rising public debt, escalating debt-servicing obligations and persistent violations of public financial management rules were threatening Nigeria’s fiscal stability, stressing the need for structural reforms to strengthen accountability in the management of public resources.
In a policy commentary, Paul Dasimeokuma of the Centre for Social Justice called for a shift from discretionary fiscal practices to strict compliance with existing laws governing budget preparation, public borrowing and debt management.
He cited Nigeria’s public debt, reported to have exceeded ₦159 trillion, and debt-servicing costs consuming more than half of federal revenues as evidence of the mounting pressure on government finances.
Dasimeokuma argued that the country could not achieve sustainable economic stability without enforcing existing fiscal laws, strengthening legislative oversight and ensuring that public borrowing delivered measurable economic and social benefits.
Centre Faults Delayed Budget Passage
The centre identified delays in the passage of annual budgets as a major weakness in Nigeria’s public financial management system, warning that disruptions to the statutory budget calendar undermine economic planning, spending predictability and the credibility of public accounts.
Dasimeokuma cited the 2026 Federal Budget, which received presidential assent on April 17, 2026, as an example of the delays that have continued to affect the budgeting process.
He referenced Section 14(1) of the Fiscal Responsibility Act (FRA) 2007, which provides a framework for the timely preparation and approval of the Medium-Term Expenditure Framework (MTEF), a key instrument underpinning the annual budget.
According to him, strict adherence to the statutory timetable would enable the Federal Government to secure presidential assent for annual budgets before the commencement of each financial year on January 1.
He also expressed concern over the extension of capital budget implementation beyond the relevant financial year, a practice that can result in multiple capital budgets being implemented simultaneously.
Dasimeokuma warned that such arrangements create uncertainty in public expenditure management, complicate financial reporting and weaken the relationship between approved appropriations and actual government spending.
He called for a predictable budget cycle that would improve fiscal planning, facilitate effective project implementation and strengthen accountability for public expenditure.
Borrowing Must Pass Cost-Benefit Test
The Centre for Social Justice also called for stricter scrutiny of public borrowing, insisting that proposed loans must undergo rigorous assessments to establish their economic viability and social benefits before approval.
Dasimeokuma cited Sections 41 and 44 of the Fiscal Responsibility Act, which address restrictions on government borrowing and the cost-benefit analysis of proposed loans, respectively.
He maintained that legislative approval of major borrowing proposals should be backed by transparent documentation detailing the purpose of each loan, its financial implications, repayment obligations and expected returns.
The centre raised concerns about what it described as insufficient public scrutiny of some borrowing approvals, warning against the use of loans to finance recurrent expenditure and debt-servicing obligations.
According to Dasimeokuma, borrowing should be guided by clear development objectives and supported by evidence that the resulting investments would generate sufficient economic or social value to justify their costs.
He stressed that transparent loan assessments would enable lawmakers, civil society organisations and citizens to evaluate the rationale for government borrowing and monitor whether borrowed funds were being used for their intended purposes.
Demand for Enforceable Debt Ceiling
The policy commentary further highlighted Section 42 of the Fiscal Responsibility Act, which provides for the establishment of an overall debt limit for the federation by the President in agreement with the National Assembly.
Dasimeokuma argued that the absence of an established, legally binding debt ceiling had weakened the institutional framework for controlling the growth of public debt.
He called for the implementation of a clear debt-limit framework that would impose enforceable constraints on borrowing and prevent governments from accumulating obligations without adequate regard for the country’s repayment capacity.
The centre maintained that effective debt management required more than periodic disclosures of outstanding liabilities. It also demanded clear borrowing limits, transparent records and consistent enforcement of fiscal rules.
Four Reforms for Presidential Candidates
To address the identified weaknesses, the Centre for Social Justice urged political parties and presidential candidates to incorporate four major commitments into their manifestoes.
The proposed reforms are:
- A predictable budget calendar: Enforce statutory timelines for budget preparation, legislative approval and presidential assent to ensure orderly public expenditure management.
- Enforceable statutory debt limits: Establish and implement a binding debt ceiling to strengthen borrowing discipline and safeguard fiscal sustainability.
- Transparent loan assessments: Require the publication of cost-benefit analyses for external loans to demonstrate their economic and social value before approval.
- Transparent public debt records: Improve access to information on government borrowing, debt obligations and the management of borrowed funds.
The centre called on political parties to move beyond general promises of economic reform by adopting specific, measurable and enforceable commitments capable of improving fiscal governance.
Dasimeokuma maintained that Nigeria’s economic stability would depend partly on the willingness of political leaders to enforce existing financial laws, strengthen oversight institutions and ensure that public borrowing and expenditure were subject to rigorous scrutiny.
He argued that strict budget discipline and transparent debt management would help restore public confidence, improve the credibility of government accounts and ensure that scarce public resources were directed towards development priorities.
The centre’s intervention places fiscal governance at the centre of the emerging political debate, urging presidential contenders to explain how they intend to manage public finances, control borrowing and ensure that future budgets deliver measurable benefits to Nigerians.
As the country approaches its next political transition, the key test, according to the centre’s position, is whether political commitments will translate into effective enforcement of fiscal laws and a more transparent, predictable and sustainable system of public financial management.
