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Speaker Abbas cautions on Nigeria’s borrowing, calls for urgent reforms

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Nigeria’s mounting debt crisis has triggered a strong warning from the Speaker of the House of Representatives, Abbas Tajudeen, who cautioned that the nation’s borrowing has breached its statutory ceiling and now poses a threat to fiscal stability.

The Speaker raised he alarm on Monday at the opening of the 11th Annual Conference and General Assembly of the West Africa Association of Public Accounts Committees, held at the National Assembly in Abuja.

The conference, which drew parliamentarians, development partners, and financial experts from across West Africa, is focusing on the theme “Strengthening Parliamentary Oversight of Public Debt: The Role of Finance and Public Accounts Committees.”

In his speech, Abbas expressed concerns that Nigeria’s debt had reached “a critical point” and called for urgent reforms in borrowing practices and oversight.

“As at the first quarter of 2025, Nigeria’s total public debt stood at N149.39 trillion, equivalent to about US$97 billion. This represents a sharp rise from N121.7 trillion the previous year, underscoring how quickly the burden has grown.

“Even more concerning is the debt-to-GDP ratio, which now stands at roughly 52 per cent, well above the statutory ceiling of 40 per cent set by our own laws.

“This is not just a budgetary concern but a structural crisis that demands urgent parliamentary attention and coordinated reform,” the Speaker warned.

The revelation comes at a time when debt servicing continues to gulp a significant portion of government revenue, leaving little room for critical spending on infrastructure, health, and education.

According to fiscal experts, Nigeria now spends more on repaying loans than on social services, raising fears that the economy may be edging toward unsustainable levels.

Abbas described the breach of the debt limit as “a signal of strain on fiscal sustainability,” stressing the need for “stronger oversight, transparent borrowing practices, and a collective resolve to ensure that tangible economic and social returns match every naira borrowed.”

He drew parallels with the wider African debt landscape, where several countries are trapped in spiralling debt service obligations.

To mitigate fiscal risks, the Speaker announced that Nigeria is ready to champion the establishment of a West African Parliamentary Debt Oversight Framework under WAAPAC.

The framework, he explained, would harmonise debt reporting across the sub-region, set transparency standards, and empower parliaments with timely data to scrutinise borrowing practices.

In addition, he unveiled plans for a regional capacity-building programme for Public Accounts and Finance Committees, designed to equip members with modern tools for debt sustainability analysis and fiscal risk assessment.

While acknowledging that borrowing remains an important tool for development, Abbas warned against reckless debt accumulation.

“Borrowing should support infrastructure, health, education, and industries that create jobs and reduce poverty. Reckless debt that fuels consumption or corruption must be exposed and rejected.

“Oversight is not just about figures but about the lives and futures behind those figures,” he stressed.

The Speaker further reiterated the 10th House’s commitment to transparency and accountability in public finance. He said under its Open Parliament Policy, all major borrowing proposals would be subjected to public hearings, while simplified debt reports would be made available to citizens.

Abbas urged participants to approach deliberations with dedication, noting that the resolutions would play a vital role in strengthening fiscal responsibility and accountability across the continent.

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Trump administration cuts energy projects, freezes New York funding

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The Trump administration has announced plans to terminate dozens of clean energy projects and freeze billions of dollars for major projects in New York, intensifying a stand-off with Democrats over a US government shutdown.

US media outlets described the moves announced by the energy and transportation departments as part of the administration’s efforts to pressure Democrats in Congress to agree on a deal to end the shutdown.

US President Donald Trump had raced to enact hard-right policies even before the shutdown began after midnight on Tuesday, threatening mass firings and to slash government departments, and blaming Democrats for Congress’ failure to resolve a funding stand-off.

The Department of Energy announced on Thursday “the termination of 321 financial awards supporting 223 projects, resulting in a savings of approximately $7.56 billion for American taxpayers.”

It said in a statement that those projects — overseen by the Office of Clean Energy Demonstrations, the Office of Energy Efficiency and Renewable Energy and other bodies — “did not adequately advance the nation’s energy needs… and would not provide a positive return on investment of taxpayer dollars.”

However, recipients of federal funding have 30 days to appeal against a termination decision, and some have already begun the process, the statement said.

It did not list the projects in question.

In a post on social media platform X, Russell Vought, who heads the powerful Office of Management and Budget, called the slashed projects “Green New Scam funding” that was used to advance “the Left’s climate agenda”.

He listed the states affected by the decision. They include California, New York and 14 others — all blue states where Trump failed to win in the 2024 presidential elections.

California Governor Gavin Newsom said the Trump administration had decided to cancel “up to $1.2 billion” slated for a major hydrogen energy project, threatening tens of thousands of jobs.

“In Trump’s America, energy policy is set by the highest bidder, economics and common sense be damned,” Newsom said in a statement, vowing to keep pursuing a “clean energy strategy… no matter what DC tries to dictate.”

In New York — the home state of top Senate Democrat Chuck Schumer and House Minority Leader Hakeem Jeffries — the Department of Transportation announced on Wednesday it was freezing nearly $18 billion in federal funding for two major infrastructure projects, the Second Avenue subway and Hudson Tunnel.

The move takes aim at diversity, equity and inclusion policies, according to the department’s statement, saying that subsidizing projects with “race- and sex-based contracting requirements… is unconstitutional, counter to civil rights laws, and a waste of taxpayer resources.”

The funds would be frozen until a “quick administrative review is complete,” it said.

“Thanks to the Chuck Schumer and Hakeem Jeffries shutdown, however, USDOT’s review of New York’s unconstitutional practices will take more time,” it added, saying that the department “has been forced to furlough the civil rights staff responsible for conducting this review.”

New York Governor Kathy Hochul, a Democrat, said in a statement that halting funding for “critical infrastructure projects” was “political payback and an attack on New York.”

“Donald Trump has been clear: he is intent on using his reckless government shutdown to hurt the American people,” she said.

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Shettima returns to Abuja after attending UNGA, meetings in Germany

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Vice President Kashim Shettima has returned to Abuja after representing President Bola Tinubu at the 80th Session of the United Nations General Assembly in New York and high-level engagements in Germany.

The vice president’s aircraft touched down at the presidential wing of the Nnamdi Azikiwe International Airport, Abuja, in the early hours of Thursday, where he was received by senior government officials.

During the week-long engagements, Shettima delivered the President’s national statement at the UNGA, calling for comprehensive reforms of the global body.

Vice President Kashim Shettima is being welcomed some government officials at the airport. Photo: State House

He also advocated Africa’s sovereignty over its estimated $700 billion mineral resources and strengthened Nigeria’s partnerships with the United Kingdom, the Gates Foundation, and other international stakeholders.

In New York, Shettima met with UN Secretary-General António Guterres, who commended Nigeria’s bid for a permanent seat on the UN Security Council.

The vice president also showcased Nigeria’s $200 billion energy transition opportunities to global investors and assured members of the Nigerian diaspora of continued engagement in the Tinubu administration’s policies and programmes.

He later proceeded to Germany for further strategic meetings before returning to the country.

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Lagos unveils artisan certification to curb building collapse

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The Lagos State Materials Testing Laboratory has launched a new certification and training programme for artisans in the construction industry as part of efforts to stem the spate of building collapses in the state.

The initiative, known as the Certified Structural Integrated Programme, was unveiled at a stakeholders’ forum held in Ese-Offin and Badagry, where block moulders, bricklayers, concrete mixers, steel fabricators and welders converged to pledge support for safer construction practices.

In a statement on Thursday by the Lagos Government, General Manager of LSMTL, Olayinka Abdul, said the programme marked a decisive step in tackling recurring tragedies linked to substandard construction materials.

“Without artisans, there is no construction. But with you, we have the power to ensure every construction is safe, sound, and secure. We need to earnestly curb episodes of collapse in high-water-prone communities, and we do not want such in your community. It ends today,” he said.

According to the statement, the CSIP is a five-year assessment programme aimed at certifying construction materials as fit-for-purpose.

It will also produce an official directory of approved block moulders, concrete mixers and steel fabricators, to whom developers will be directed for supplies.

“This is not just about enforcement; it is about partnership and empowerment. Together, we can forge an unbreakable alliance that makes Lagos a model for building safety and integrity,” Abdul added.

Technical experts at the forum highlighted the scientific backing for the initiative. Director of the Soil and Geotechnics Unit, Engr. Abimbola Adebayo, stressed the need for mandatory soil tests before construction.

Similarly, Kayode Akinfeleye of the Technical Services Department advised builders to ensure architectural drawings are obtained and preserved, describing them as “a core requirement in the Lagos building process.”

Artisan guild leaders welcomed the initiative. Chairman of the National Association of Block Moulders of Nigeria, Alhaji Fabiyi Oyeleke, described frequent collapses as “disheartening” and commended the forum as a step in the right direction.

On his part, Chairman of the Lagos State Bricklayers Association, Mr. Fashina Aro, noted the peculiarities of Lagos’s swampy terrain and urged all stakeholders to ensure materials and soil tests are completed before bricklayers commence work on any site.

Building collapse has been a persistent challenge in Lagos, with many lives lost and substantial property damage over the years.

In recent incidents, emergency responders have had to rescue workers from collapsed structures.

PUNCH Online reports that rescue teams pulled eight workers from the debris of a collapsed building in September.

Reports by the Building Collapse Prevention Guild show Lagos accounts for about 55% of recorded building collapse incidents in Nigeria over the past several decades.

In response, Lagos has taken steps to strengthen bodies like the Lagos State Building Control Agency, enhancing enforcement, monitoring, and regulation of building standards.

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