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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.

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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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‘If You’ve Removed Subsidy, Why Still Borrowing?’, Emir Sanusi II Queries Federal Govt’s Fiscal Strategy

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The 16th Emir of Kano, Muhammadu Sanusi II, has questioned the Federal Government’s continued reliance on borrowing despite the removal of petrol subsidy, warning that poor fiscal discipline could erode the gains of recent reforms.

Speaking in an interview with News Central TV on Friday, the former Governor of the Central Bank of Nigeria (CBN) said while the removal of fuel subsidy and the liberalisation of the exchange rate were necessary, their timing and implementation remained problematic.

“If you’re not paying the subsidy and you’ve got the money, why are we still borrowing and borrowing? What are we borrowing for?

“I have always said the subsidy regime was unsustainable. We cannot continue supporting foreign refineries. We’re an oil-producing country. Keeping refineries open abroad while we’re not doing our own,” Emir Sanusi II said.

He, however, expressed optimism over Nigeria’s shift toward domestic refining, noting that the country has moved from being a major importer of petroleum products to an exporter.

“Today, we have a situation where we have our own domestic refinery. We’re not importing petroleum products. We’re even exporting to Europe, and this is very good for the economy,” he added.

Despite supporting the reforms, Sanusi II raised concerns about sequencing, arguing that policy execution without proper monetary tightening contributed to the naira’s sharp depreciation.

“Artificial exchange rates, especially when you’re printing money, cannot work. There was going to be a devaluation,” he said.

“For me, removing subsidy or liberalising exchange rates, these are good interventions. Were they done at the right time? Those are certain questions.”

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He explained that implementing exchange rate liberalisation in a “loose monetary environment” worsened currency instability.

“If you decide to remove subsidy and liberalise exchange rates… before you have tightened money supply, the naira drops to a bottomless pit. That was a timing issue,” he said.

The monarch further challenged the government’s fiscal direction, questioning the rationale behind continued borrowing.

“We’ve removed the subsidy… what we should now see is fiscal consolidation. You cannot remove wastages and continue borrowing,” he said.

His remarks came amid concerns over Nigeria’s rising debt profile. Reports indicated that the Federal Government has increased its 2026 borrowing plan by ₦11.31 trillion, bringing the total to ₦29.20 trillion.

President Bola Tinubu also recently sought Senate’s approval for a fresh $516 million loan to fund the Sokoto–Badagry Superhighway project, further fuelling debate over the country’s fiscal direction.

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FG raises allowances, boosts welfare for civil servants

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The Federal Government of Nigeria has approved a sweeping increase in peculiar allowances and other welfare benefits for civil servants, in a move aimed at improving take-home pay and boosting morale across the public service.

The announcement was made on Friday by the Head of the Civil Service of the Federation, Didi Walson-Jack, during a press briefing in Abuja, where she outlined key reforms endorsed by the Federal Executive Council.

According to Walson-Jack, the review affects workers under both the Consolidated Public Service Salary Structure (CONPSS) and the Consolidated Research and Allied Institutions Salary Structure (CONRAISS), ensuring a broad-based impact across all cadres.

She said the revised peculiar allowances have been structured to reflect across all grade levels, resulting in a meaningful increase in earnings for both junior and senior officers.

In addition, the government approved an upward review of several key allowances, including duty tour allowance (DTA), estacode, and book allowance. Walson-Jack noted that virtually all allowances listed under the Public Service Rules have now been revised.

A major highlight of the reform is the approval of 100 percent Duty Tour Allowance for civil servants attending approved training programmes, regardless of whether travel is involved.

“Even if you are based in Abuja and attend training within Abuja, you are entitled to full DTA,” she said.

Beyond salary-related adjustments, the government also introduced a new exit benefit scheme for retiring civil servants under the Contributory Pension Scheme. The scheme provides 100 percent of a retiree’s total annual emoluments as an exit package, in addition to their pension, effective January 1, 2026.

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Walson-Jack described the move as a step toward ensuring dignity in retirement, stressing that no public servant should leave service without adequate financial support.

The government also confirmed the operationalisation of the Employee Compensation Scheme, designed to provide financial protection for workers who suffer job-related injuries or death.

The reforms come amid growing calls from labour unions for improved welfare, as rising living costs continue to put pressure on workers. Analysts say the combined measures could significantly enhance financial stability for civil servants and improve overall productivity in the public sector.

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Wiretapping: El-Rufai pleads not guilty, faces fresh charges

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The Federal Government, on Thursday, expanded the criminal case against former Kaduna State Governor, Nasir El-Rufai, introducing fresh allegations bordering on interference with critical national infrastructure and unauthorised access to classified information.

The new counts are contained in a further amended five-count charge filed on April 13, 2026, before the Federal High Court in Abuja, replacing an earlier three-count charge instituted on February 16, 2026.

At his arraignment on Thursday before Justice Joyce Abdulmalik, El-Rufai, however, pleaded not guilty to all counts after the court granted the prosecution’s request to substitute the initial charge.

The Department of State Services, through its counsel, Oluwole Aladedoye (SAN), told the court that the amended charge significantly revised the allegations against the former governor, urging the court to adopt the new processes.

Unlike the earlier charge, which focused mainly on alleged unlawful interception of communications, the fresh counts introduce a broader national security dimension.

In count one of the amended charge, the prosecution accused El-Rufai of “intentionally and unlawfully interfer[ing] with the communication” of the National Security Adviser, Nuhu Ribadu, describing the communication channel as part of Nigeria’s critical national information infrastructure.

The charge states that the alleged act contravenes provisions of the Designation and Protection of Critical National Information Infrastructure Order, 2024, and is punishable under the Cybercrimes (Prohibition, Prevention, etc) Amendment Act, 2024.

In a separate and newly introduced count, the prosecution alleged that El-Rufai, “without authorisation, intentionally secured access to classified information” relating to Ribadu, including details of his arrest and detention order issued on February 12, 2026.

This count marks a shift from the earlier framing of the case, which was limited to claims of intercepted communications, to a more serious allegation involving breach of classified state information.

The amended charge also retains and restructures earlier allegations. Count four accuses the defendant of unlawfully intercepting the NSA’s communications, while count five alleges that he and others still at large used technical systems that compromised public safety and national security, thereby instilling fear among Nigerians.

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Part of count four reads, “That you, Mallam Nasir El-Rufai, adult, male, intentionally and without authorisation, intercepted the communications of the National Security Adviser, Nuhu Ribadu, as admitted by you on 13th February, 2026, while appearing as a guest on Arise TV Station’s Prime Time Programme in Abuja… and thereby committed an offence contrary to and punishable under Section 12(1) of the Cybercrimes Act.”

Count five further states, “That you… did use technical equipment or systems which compromised public safety, national security and instilling reasonable apprehension of insecurity among Nigerians… and thereby committed an offence contrary to and punishable under Section 131(2) of the Nigerian Communications Act, 2003.”

The February charge had contained only three counts, focusing on alleged admission of unlawful interception, failure to report individuals involved, and actions capable of undermining public safety.

However, the amended charge introduces two additional counts and separates previously combined allegations into distinct offences, effectively broadening the scope of criminal liability.

Defence counsel, Oluwole Iyamu (SAN), confirmed receipt of the amended charge and did not oppose its substitution.

Following this, the court struck out the earlier charge and proceeded with the fresh arraignment.

After the plea was taken, the prosecution applied for an accelerated hearing, seeking three consecutive trial dates.

The defence objected, arguing that El-Rufai’s access to legal counsel could be affected due to his custody under the Independent Corrupt Practices and Other Related Offences Commission.

The defence also drew the court’s attention to a pending bail application filed on February 17, noting that an earlier missing affidavit had been located.

The DSS informed the court that it was not opposing the bail request.

In another application, the prosecution sought to shield the identities of two witnesses, requesting that their names be replaced with pseudonyms in court records, citing security concerns.

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The defence opposed the request, insisting that it violated the defendant’s constitutional right to know his accusers and that no concrete threat had been demonstrated.

Further arguments arose over access to proof of evidence, with the defence urging the court to compel disclosure to enable proper preparation for trial.

The prosecution opposed the application, describing it as procedurally misplaced.

The defence also filed a motion seeking to quash the amended charge, while the prosecution asked the court to dismiss it as lacking merit.

After listening to both sides, Justice Abdulmalik adjourned the matter to May 18, 19 and 20, 2026, for hearing.

Bail bid fails

The PUNCH gathered that the Kaduna State High Court refused El-Rufai’s bail application on the grounds that the seriousness of the allegations against him, as well as concerns over possible interference with investigations, outweighed the arguments advanced for his release.

The ruling was delivered on 21 April 2026 by Justice D.H. Khobo of the Kaduna Judicial Division in Charge No: KDH/KAD/ICPC/01/2026, filed by the Federal Republic of Nigeria through the ICPC.

El-Rufai had approached the court via a motion dated 25 March 2026, seeking bail “either on self-recognisance or upon such liberal terms as the court may deem fit.”

His application, brought under Sections 35(4) and 36(5) of the 1999 Constitution (as amended) and provisions of the Kaduna State ACJL 2017, argued that the offences were not capital in nature and, therefore, carried a presumption in favour of bail.

He further contended that he had strong community ties, fixed addresses, and substantial assets, which, according to him, eliminated any risk of flight.

El-Rufai also told the court he voluntarily returned from Egypt on 16 February 2026 to honour an EFCC invitation, and argued that the amended charge was “fundamentally defective” and “unintelligible.”

He also raised health concerns, claiming he required specialist medical attention.

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The ICPC opposed the application through a nine-paragraph counter-affidavit deposed to by Idris Abubakar, insisting that the offences were serious and “economically sabotaging.”

The anti-graft agency argued that the former governor posed a flight risk, adding that there was a likelihood he could interfere with witnesses and ongoing investigations involving other suspects.

It also alleged an incident at the Nnamdi Azikiwe International Airport, Abuja, on 12 February 2026, where El-Rufai allegedly obstructed law enforcement officers.

The ICPC further dismissed his medical claims, stating that no supporting medical report was provided.

In his ruling, Justice Khobo held that the gravity of the nine-count charge, coupled with allegations of interference and obstruction, made bail inappropriate at this stage.

The court stated, “In the instant application, given the gravity of the nine-count charge against the defendant/applicant, the respondent’s credible apprehension regarding the interference with the ongoing investigations linked to other persons still at large… the interest of justice is best served by ensuring the applicant remains available for an accelerated trial.”

The judge also faulted the defence on health grounds, noting, “The applicant in my view has failed to provide sufficient medical evidence to justify the grant of bail on health grounds.”

Consequently, the court held, “Accordingly, the defendant/applicant’s application for bail pending trial fails and is hereby refused.”

Justice Khobo ordered that El-Rufai “shall remain in the custody of the respondent (ICPC) pending the commencement of the trial,” while directing that proceedings be conducted on an accelerated basis.

The court also fixed June 1, 2, 3 and 4, 2026, for day-to-day hearing, following what it described as a consensus between prosecution and defence counsel.

For now, the former governor remains in ICPC custody as the substantive trial awaits commencement.

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