*Urges ‘Borrow Better’ framework to curb soaring public debt
Ndubuisi Francis in Abuja
The Economic and Fiscal Justice Coalition (EFJC) has admonished the federal to make poverty reduction the primary measure of its economic success, arguing that the overriding objective of economic policy should not merely be macroeconomic stabilisation, but the improvement of human welfare.
EFJC’s admonition was passed on during a meeting with the Minister of Finance and Coordinating Minister of the Economy Mr. Taiwo Oyedele, in Abuja, Thursday.
The coalition’s presentation was delivered by the Executive Director, Centre for Economic and Social Justice (CENSOJ), Mr. Eze Onyekpere.
Noting that macroeconomic stability is indispensable as no nation can sustain growth under conditions of fiscal indiscipline, runaway inflation, unsustainable debt, or chronic exchange rate instability, EFJC however, noted that macroeconomic stability is not an end in itself.
“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,” it said.
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. “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,” EFJC said, advocating for a people-centred economic reform agenda.
Insisting that poverty reduction must become the primary measure of economic success, EFJC submitted that the overriding objective of economic policy should not merely be macroeconomic stabilisation, but the improvement of human welfare.
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 cutting down on the nation’s rising public debt and ensure that future borrowing supports sustainable economic development.
Arguing that Nigeria’s debt profile requires greater prudence, the Coalition acknowledged that public borrowing is not inherently problematic as every modern economy borrows.
“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 ₦87.38 trillion in June 2023 to approximately ₦159.28 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, it added, repay debts with revenue, not GDP, noting 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.
“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,” EFJC said
