A new reporting template that tracks debt from disbursement to delivery and explicitly connects it to development outcomes has the power to empower citizens, civil society, and oversight institutions. It would not only enhance transparency and accountability but also open up a new era of transparency and accountability in Nigeria’s debt management. It would make it possible to ask critical questions. What was promised? What was delivered? At what cost? And, most importantly, who is accountable?
In recent years, Nigeria’s public debt has grown exponentially, prompting heated debates on its sustainability and long-term implications. Nigeria’s debt rose from ₦3.37 trillion in 1999 to ₦26.25 trillion in 2022. As of Q1, the total debt stock stood at ₦149.39 trillion, or approximately US$97.2 billion, comprising 52.7 per cent domestic and 47.3 per cent external debts, with the Federal Government owing more than 90 per cent of the total debt. While the discourse often centres on the volume of debt, less attention is paid to how debt is reported, tracked, and understood by citizens. Much less, the process for considering and approving debt acquisition.
The current debt reporting template, which focuses predominantly on amounts borrowed and repayment schedules, fails to tell a more critical story, for instance, of what the debt is being used for, who is benefiting from it, and whether it is yielding value for money.
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This gap is more than technical. It is a deep accountability failure. Without a clear link between debt and development outcomes, Nigerians are left in the dark, unable to assess whether the obligations incurred on their behalf are justified. At a time when Nigeria faces mounting economic challenges, including high inflation, currency volatility, and a shrinking fiscal space, the need for a debt reporting system that fosters public trust and strengthens accountability is urgent.
Currently, the Debt Management Office (DMO) provides quarterly updates on Nigeria’s public debt. These reports offer disaggregated data on domestic and external debt, debt share by Federal and State governments, and debt service obligations. While these data are essential, they are inadequate for understanding and assessing the rationale behind debt accumulation and its developmental impact. It begs the question, “where is the money?” For instance, where has the over ₦100 trillion debt of the last three years gone to? Unfortunately, no publicly accessible template systematically links borrowed funds to specific projects, intended outcomes, implementation status, or impact assessments. If any exist, they are probably not available to the public.
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Moreover, current reports do not integrate metrics for cost-effectiveness, social return on investment, or human development indicators such as access to health, education, or infrastructure improvements. This absence makes it difficult for both policymakers and the public to assess whether borrowed resources are being deployed efficiently and in ways that genuinely advance national development priorities. The absence hides any inefficiency in the system and limits the accountability effort.
In a democracy, public trust is the currency of governance. When citizens perceive that their government borrows without transparency or accountability, they lose trust. This trust deficit can undermine revenue generation, as people resist paying taxes, weaken social cohesion, and fuel political discontent. Last week, Mr. Taiwo Oyedele, the chairperson of the Presidential Tax Reform Committee, shared details of Nigeria’s tax reform and plans for taxing high-net-worth individuals during a side event at the just-concluded Financing for Development conference. His presentation suggests lots of good intentions. However, I couldn’t help worrying about how the trust deficit may ultimately undermine the good intentions and hard work that the Committee put into the new tax legislation.
The opacity in Nigeria’s debt reporting system has contributed to widespread scepticism about the true state of public finances. For instance, numerous high-profile infrastructure projects have been announced with fanfare, allegedly financed by public borrowing, yet their timelines remain vague, outcomes unclear, and costs disputed. Without robust public scrutiny, these projects often become fertile grounds for mismanagement and outright corruption. This lack of transparency has also led to our creditors being called out. Quite legitimately, Nigerians deserve to ask what the true intention of the creditors is if neither the creditors nor the Nigerian government can show hard evidence of the national impact of the loans.
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A new reporting template that tracks debt from disbursement to delivery and explicitly connects it to development outcomes has the power to empower citizens, civil society, and oversight institutions. It would not only enhance transparency and accountability but also open up a new era of transparency and accountability in Nigeria’s debt management. It would make it possible to ask critical questions. What was promised? What was delivered? At what cost? And, most importantly, who is accountable?
A new debt reporting template should be rooted in the principle of ‘value for money.’ It should be designed to demonstrate how each naira borrowed contributes to Nigeria’s development goals. This includes integrating indicators such as project-specific financial data, implementation status and timelines, development impact metrics (for example, the number of schools built, kilometres of roads completed, and the number of people connected to clean water), geographic distribution of projects to ensure equity, independent audit and citizen feedback mechanisms, among other things.
It is time for Nigeria to streamline the debt acquisition process. Nigerians need to know who is involved and the processes for planning, budgeting, approval, debt negotiation, collection, administration, project implementation, reporting, and auditing of public debts in order to participate effectively and demand accountability.
Such a framework would shift the conversation from how much Nigeria owes to the integrity of the debt acquisition process and what Nigeria is achieving with its borrowing.
Since the return to democracy in 1999, Nigeria has made repeated commitments to improving public financial management, including creating legislation on public procurement and the Fiscal Responsibility Act. It launched the MTEF framework, NOCOPO, and Treasury Single Accounts, among others. It signed the Extractive Transparency Industry Initiative Act and launched the Open Government Partnership with measurable National Action Plans. The four new tax bills recently signed into law by the Tinubu administration signal the administration’s commitment to growing domestic revenue, driving economic growth, and improving tax administration. A modern, integrated debt reporting template aligns with these commitments to redefine public discourse on debts and enhance transparency and accountability in debt management.
The digital revolution unfolding in Nigeria presents an unprecedented opportunity. With increasing internet penetration, mobile access, and data analytics capabilities, it is now possible to build interactive, real-time platforms that report not only debt figures but also outcomes and performance. Open-source tools and community monitoring apps can all be leveraged to enhance transparency and accountability in debt management.
Nigeria’s developmental challenges are urgent and complex, from expanding access to quality education and healthcare to bridging infrastructure deficits, tackling inequality, unemployment, and diversifying the economy. Borrowing can be a powerful tool for addressing these challenges, but only if it is done responsibly and transparently. The current template hides critical data for objective public engagement with Nigeria’s debt stock.
A new debt reporting template is not a silver bullet, but it is a necessary step toward ensuring that borrowing decisions are guided by evidence, open to scrutiny, and geared toward genuine impact. It would signal the Tinubu administration’s commitment to transparency and accountability and ensure debt management contributes to public good. It would enhance the quality of analysis and debate, as well as nonprofit efforts to improve debt accountability.
Ultimately, transparency is not just about publishing data; it is about telling the full story of the promises made, the actions taken, and the lives that have been changed. That is the template Nigeria urgently needs. That is the obligation the Minister of Finance and Nigeria’s creditors owe to the Nigerian people.
Dayo Olaide is a public analyst and nonprofit expert. Email: [email protected]
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