Economist seeks forensic audit, debt relief to free Nigeria’s fiscal space

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A financial expert and economist, Ernest Abegbe, has urged the Federal Government to undertake a comprehensive forensic audit of Nigeria’s ...

A financial expert and economist, Ernest Abegbe, has urged the Federal Government to undertake a comprehensive forensic audit of Nigeria’s domestic and external debt portfolio, noting that rising debt-servicing obligations are squeezing resources needed to finance critical infrastructure and stimulate economic growth.

Abegbe said an independent review of the country’s debt obligations could uncover questionable or improperly documented liabilities, identify debts eligible for cancellation and provide a basis for negotiating interest and penalty waivers, restructuring and other forms of relief with creditors.

Speaking with journalists in Abuja , he argued that Nigeria must move beyond publishing aggregate debt figures and debt-to-GDP ratios to establishing the legitimacy, utilisation and economic value of every borrowing transaction undertaken by successive administrations.

He said 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.

According to him, a credible reconciliation and validation exercise would strengthen Nigeria’s negotiating position with creditors and help the government distinguish legitimate obligations from those that may be challenged or renegotiated.

“Debt management must go beyond reporting how much the country owes and how much it spends on servicing those obligations. There is a need to establish the authenticity, history and economic value of every debt transaction,” he argued.

The economist cited the debt relief secured by Nigeria under former President Olusegun Obasanjo’s administration in 2005 and 2006 as evidence that strategic creditor engagement could deliver significant fiscal relief.

Abegbe maintained that the country’s growing debt-servicing burden has become a major constraint on economic development, limiting the government’s ability to fund infrastructure, implement…

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