Nigerian financial expert Ernest Abegbe has called on the Federal Government to conduct a comprehensive forensic audit of the country's domestic and external debt portfolio. Abegbe argues that rising debt-servicing obligations are constraining resources needed to finance critical infrastructure and stimulate economic growth. He believes an independent review could uncover questionable or improperly documented liabilities and identify debts eligible for cancellation.
Abegbe stated that the proposed audit should cover the origin, authorisation, purpose, disbursement, utilisation, beneficiaries, repayment history, legal status, and verifiable outstanding balances of every public debt obligation. This, he says, would strengthen Nigeria's negotiating position with creditors and help distinguish legitimate obligations from those that may be challenged or renegotiated.
The economist cited Nigeria's debt relief experience under former President Olusegun Obasanjo's administration in 2005 and 2006 as evidence that strategic creditor engagement could deliver significant fiscal relief. Abegbe noted that the country's growing debt-servicing burden has become a major constraint on economic development, limiting the government's ability to fund infrastructure and implement poverty-reduction programmes.
Abegbe argued that debt management must go beyond reporting aggregate debt figures and debt-to-GDP ratios to establishing the legitimacy, utilisation, and economic value of every borrowing transaction. He stressed that any fiscal savings arising from debt relief must be transparently accounted for and channelled into productive sectors rather than absorbed by recurrent government expenditure.
The expert identified infrastructure, power, healthcare, education, agriculture, industrial development, job creation, and support for small businesses as priority areas that should benefit from additional fiscal resources. Abegbe, a Fellow of the Institute of Chartered Accountants of Nigeria, Chartered Institute of Taxation of Nigeria, and Institute of Management Consultants, also holds the CFAN designation.
Abegbe called for debt reconciliation, validation, and strategic relief to become central components of Nigeria's broader fiscal and economic reform agenda. He suggested that the outcome of the proposed forensic review should form the basis for structured negotiations with creditors to secure sustainable repayment terms, cancellation of eligible obligations, and waivers on accumulated interest and penalties where justified.
Modestus Anaesoronye, a leading Nigerian financial journalist, has over two decades of experience reporting on the insurance and pension sectors. He has held key editorial positions at major national media outlets and currently serves as a Senior Financial Analyst at BusinessDay Media Ltd. Anaesoronye is a multiple award-winning journalist, honoured several times as Insurance Journalist of the Year and Pension Journalist of the Year by recognised industry bodies.
Key points
- The proposed forensic audit could uncover questionable liabilities and provide a basis for debt relief.
- Nigeria's growing debt-servicing burden has become a major constraint on economic development.
- Fiscal savings from debt relief should be channelled into productive sectors.
