Nigeria gets negative rating in global debt transparency review

According to the results of the Open Budget Survey 2025, Nigeria was rated poorly in terms of transparency, accountability, oversight and public participation in debt management.

The report, which assessed publicly available data between January 1, 2023 and December 31, 2024, identified important gaps in the country’s debt accountability framework, despite the existence of legal and institutional frameworks.

The investigation, conducted by the International Budget Partnership, found that Nigeria’s systems for managing public debt are not sufficiently clear, coherent or accessible to citizens and stakeholders.

Speaking at the launch of the report in Abuja, the organisation’s country director, Olayinka Babalola, said weak public participation and low transparency were fueling distrust in public lending.

He noted that citizens, civil society groups and the media have little or no structured opportunity to engage authorities on lending plans, debt levels and fiscal decisions before they are finalized.

“Government debt is no longer just a technical issue for economists or government officials. It affects the provision of services, trust in institutions and citizens’ understanding of how borrowing affects their lives,” he said.

According to her, although Nigeria has formal frameworks governing debt management, including the roles of parliament and the auditor general, implementation remains weak.

Babalola added that debt information is often fragmented and not presented in a single accessible format that allows citizens or analysts to track the loan, terms and intended use.

It further noted that oversight by the National Assembly exists in law but is less evident in practice, with limited public evidence of detailed legislative oversight of debt strategies during the budget process.

The report highlighted four critical areas of concern – legal and institutional framework, debt transparency, debt supervision and public participation – underlining that none currently work effectively enough to ensure full accountability.

Furthermore, Onyekachi Chukwu, IBP Senior Program Coordinator for Strategy and Policy, stressed that the real challenge goes beyond the volume of loans.

“The real issue is whether lending decisions are governed transparently, responsibly and in line with the public interest,” he said, adding that while lending is inevitable for most countries, it must be done responsibly.

The IBP urged the federal government to prioritize reforms that would improve debt information disclosure, strengthen oversight mechanisms, and create inclusive platforms for citizen engagement.

It warned that failure to address these gaps could further erode public trust and undermine confidence in fiscal governance.

The Open Budget Survey is considered the world’s leading independent assessment of transparency, oversight and public participation in national budget systems.

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