• Urges ‘Borrow Better’ framework to curb soaring public debt
Ndubuisi Francis in Abuja
Economic and Fiscal Justice Coalition (EFJC) has appealed to the federal government to make poverty reduction the primary measure of its economic success, stating that the overriding objective of economic policy should not merely be macroeconomic stabilisation, but the improvement of human welfare.
EFJC made the call on Thursday during a meeting with Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, in Abuja.
The coalition’s presentation was delivered by Executive Director, Centre for Economic and Social Justice (CENSOJ), Mr. Eze Onyekpere.
Noting that macroeconomic stability was indispensable, as no nation could sustain growth under conditions of fiscal indiscipline, runaway inflation, unsustainable debt, or chronic exchange rate instability, EFJC stated, however, that macroeconomic stability was not an end in itself.
The group said, “It is valuable only to the extent that it expands opportunities, creates productive employment, improves incomes, and enhances the quality of life of citizens.
“Nigeria today faces what development economists describe as the ‘growth without inclusion’ dilemma.”
The group told the minister that growth should create employment and reduce inequality, adding that, ultimately, public finance is not an end in itself, but an instrument for improving human welfare.
EFJC stated, “Accordingly, our submission today is guided by one overarching proposition: the success of Nigeria’s economic reforms should ultimately be measured not only by stronger macroeconomic indicators but by whether they reduce poverty, create decent jobs, improve public services, strengthen citizens’ resilience, and expand opportunities for all Nigerians.
“It is in that constructive spirit that we respectfully present the following observations and recommendations for your consideration.”
It advocated a people-centred economic reform agenda.
On Nigeria’s burgeoning public debt, the coalition called on the federal government to adopt a “Borrow Better” framework as part of overall efforts to cut down on the country’s rising public debt and ensure that future borrowing supported sustainable economic development.
Stating that Nigeria’s debt profile required greater prudence, the coalition acknowledged that public borrowing was not inherently problematic, as every modern economy borrowed.
It said, “The fundamental questions are: what are we borrowing for? Are borrowed resources financing productive investments? Are those investments generating sufficient economic returns? Can future revenues comfortably service those debts?
“Nigeria’s public debt has risen significantly over the past decade. According to the Debt Management Office, total public debt increased from N87.38 trillion in June 2023 to approximately N159.28 trillion by the end of 2025, representing one of the fastest periods of debt accumulation in the country’s history. “At the same time, debt service continues to consume a substantial proportion of federally retained revenues, reducing fiscal space for education, healthcare, infrastructure and social investments.
“Although Nigeria’s debt-to-GDP ratio remains moderate compared with many emerging economies, the more relevant indicator is debt service-to-revenue.”
The group said countries repaid debts with revenue, not GDP, stating that this is precisely why the Fiscal Responsibility Act requires government to maintain debt at sustainable levels while ensuring that borrowing finances capital expenditure and human development.
It stated, “The coalition, therefore, respectfully recommends that government consider adopting a ‘Borrow Better’ framework, anchored on five principles: Borrow only for productive investments. Publish cost-benefit analyses for all major loans. Promote popular participation, guarantee transparency in all facets debt management in accordance with the Fiscal Responsibility Act. Prioritise concessional financing. Establish measurable development outcomes for every borrowed Naira.
“Borrowing should become an instrument of development, not merely a mechanism for financing budget shortfalls.”