The Labour Party (LP), under the leadership of Nenadi Usman’s faction, has voiced its strong support for Speaker of the House of Representatives, Tajudeen Abbas, concerning his concerns about President Bola Tinubu’s borrowing practices. The party, through its National Publicity Secretary (Interim), Tony Akeni, commended Abbas for acknowledging the risks associated with the country’s escalating debt burden, referring to it as steering the nation into “dangerous waters.” This commendation comes amidst a backdrop of rapidly increasing national debt, which has raised alarms within various segments of the Nigerian polity. The LP further called upon Senate President Godswill Akpabio to transcend partisan affiliations and join the growing chorus advocating for fiscal prudence and a reassessment of the current borrowing trajectory.
The crux of the LP’s argument rests on the alarming statistics reflecting Nigeria’s debt profile. Akeni highlighted the rapid surge in the nation’s debt stock, which escalated from ₦121.7 trillion to ₦149.39 trillion in just the first three months of 2025. This precipitous increase drove the debt-to-GDP ratio to 52%, significantly exceeding the legally stipulated ceiling of 40%. Furthermore, a staggering ₦8.93 trillion, representing 61% of the total government revenue, was consumed by debt servicing within a mere nine months. The LP characterized these figures not as mere statistical data points but as a severe threat to the economic future of Nigerians, both present and future generations. The party emphasized the significance of Abbas’s acknowledgement of the unsustainable nature of Tinubu’s borrowing practices, given his position within the ruling All Progressives Congress (APC).
While acknowledging Abbas’s past involvement in approving loan requests, the LP framed his recent intervention as a crucial corrective measure. The party urged the Senate President, Godswill Akpabio, to resist the temptation to transform the Senate into a “rubber stamp” for the Executive branch. The statement emphasized the historical accountability that leaders face for decisions that impact the nation’s destiny, cautioning against mortgaging the country’s future. The LP’s position underscores the need for rigorous scrutiny of loan proposals and a departure from practices that prioritize political expediency over the long-term economic well-being of Nigeria.
The LP has articulated a clear set of criteria for evaluating future loan requests. The party insists that any proposed borrowing must be accompanied by a well-defined, measurable plan demonstrating its contribution to infrastructure development, economic growth, and positive social impact. Anything short of this, the party argued, should be rejected outright. This stance reflects a growing concern that borrowed funds are not being utilized efficiently and transparently, raising questions about the allocation and management of these resources. The LP’s emphasis on measurable plans and tangible outcomes suggests a desire for greater accountability and a shift away from what it perceives as wasteful spending, excessive luxury, and political patronage.
Abbas, during his address at the West Africa Association of Public Accounts Committees conference, expressed deep reservations about Nigeria’s burgeoning debt, characterizing it as having reached a “critical point.” He advocated for urgent reforms in borrowing practices and enhanced oversight mechanisms to ensure fiscal responsibility and sustainability. His remarks, coming from the Speaker of the House, added significant weight to the growing concerns surrounding the nation’s debt trajectory. Abbas’s call for reforms signals a recognition within the government itself that current practices are unsustainable and require immediate attention.
However, following the widespread reporting of his concerns, Abbas, through his Special Adviser on New Media, Jowosimi Enitan, issued a clarification, denying reports that he had condemned government borrowing outright. Enitan emphasized that the Speaker’s message was not against borrowing per se but rather a call for greater transparency, accountability, and robust oversight. The clarification sought to frame Abbas’s remarks within the context of advocating for responsible borrowing practices, where debt is strategically utilized to drive tangible development outcomes, including investments in crucial sectors such as roads, schools, hospitals, and innovation. This clarification highlights the delicate balance between the need for borrowing to fund development initiatives and the imperative of managing debt responsibly to avoid jeopardizing the nation’s economic future.
