By Suleiman Abubakar
The Senator representing Kogi East, Isah Jibrin Echocho has raised concerns about the growing burden of Nigeria’s debt as outlined in President Bola Ahmed Tinubu’s 2025 budget.
While the senator acknowledged the budget’s strategic focus on critical areas like security, infrastructure, and human capital development, he cautioned that the substantial allocation for debt servicing could hinder the country’s long-term fiscal sustainability.
One of the most pressing concerns raised by Senator Echocho was the allocation of over 15% of the 2025 budget to debt servicing.
He warned that this level of expenditure on debt repayment is unsustainable and could deepen Nigeria’s financial woes in the future. “This is a critical issue because it raises fundamental questions about the sustainability of our debt levels,” he said.
Echocho further stressed the need for Nigeria to putting more efforts to improve revenue generation, highlighting that without enhancing the performance of revenue-generating agencies, the country could continue facing fiscal shortfalls. “To manage this deficit, we must focus on enhancing the performance of our revenue-generating agencies,” he stated, underlining that improving tax collection and reducing reliance on borrowed funds are crucial steps in ensuring Nigeria’s financial stability.
According to him, The 2025 budget, like the 2024 budget, is expected to run at a deficit. The heavy burden of debt servicing, coupled with the reliance on borrowing to fund the budget, has led to concerns about the country’s ability to manage its fiscal policy effectively.’
Senator Echocho pointed out that while the government has ambitious plans for economic growth, achieving this while managing the deficit and debt will require robust fiscal reforms and strategic planning.
“The road ahead is challenging, but with the right policies and effective execution, we can achieve a more stable and prosperous future for Nigeria,” Echocho concluded, stressing the importance of balancing growth initiatives with fiscal responsibility.
Echocho’s remarks highlighted the delicate balance Nigeria must strike between investing in critical sectors for growth and ensuring that fiscal responsibility is maintained to avoid further escalation of the country’s debt challenges.
