Economist Calls for Debt Cancellation, Forensic Audit to Boost Nigeria’s Fiscal Space

‎A financial expert and economist, Dr. Ernest Abegbe, has called on the Federal Government to conduct a comprehensive forensic audit of Nigeria’s domestic and external debt portfolio, advocating the cancellation of eligible debts, interest and penalty waivers, and strategic restructuring to create fiscal space for national development.

‎Speaking to journalist in Abuja, Abegbe stated that a thorough reconciliation, validation and independent forensic review of the country’s entire debt portfolio would establish the origin, authorisation, purpose, disbursement, utilisation, beneficiaries, repayment history, legal status and verifiable outstanding balances of every public debt obligation.

‎He argued that Nigeria’s debt management strategy must move beyond the publication of aggregate debt figures, debt-to-GDP ratios and periodic debt-servicing statistics to a more detailed examination of the authenticity, history and economic value of every borrowing transaction undertaken by successive administrations.

‎The economist remarked that the exercise would provide the necessary foundation for the Federal Government to negotiate strategic debt forgiveness, cancellation of eligible obligations, interest and penalty waivers, restructuring and other relief measures with relevant creditors.

‎He cited the landmark debt relief secured by Nigeria under former President Olusegun Obasanjo’s administration in 2005 and 2006 as a precedent that could provide useful lessons for the country’s current debt management efforts.

‎According to him, Nigeria’s increasing debt-servicing burden has become a major constraint on economic growth, limiting the government’s fiscal capacity, frustrating critical reforms and weakening its ability to finance infrastructure and implement poverty-reduction programmes.

‎He noted that the pressure of debt repayments has continued to restrict the resources available for capital projects and other essential development initiatives, stressing that a comprehensive debt review could help identify opportunities for meaningful relief.

‎Abegbe maintained that debt reconciliation, validation and strategic relief should not be treated merely as accounting or conventional debt management exercises, but as critical components of the country’s broader economic reform and development strategy.

‎He averred that the Federal Government must leverage the outcome of the forensic review to engage creditors on sustainable repayment arrangements and identify debt obligations that could be legitimately challenged, cancelled or renegotiated.

‎The economist further stressed that any savings generated through debt relief must be transparently accounted for and directed towards priority sectors capable of stimulating economic growth and improving citizens’ welfare.

‎He listed infrastructure, power, healthcare, education, agriculture, industrial development, job creation and support for small businesses as key areas that should benefit from the additional fiscal resources.

‎Abegbe, a Fellow of the Institute of Chartered Accountants of Nigeria (FCA), Chartered Institute of Taxation of Nigeria (FCTI) and Institute of Management Consultants (FIMC), also holds the CFAN designation.

‎He urged the Federal Government to make debt transparency, accountability and sustainable borrowing central to its fiscal policy, arguing that creating sufficient fiscal space would enable Nigeria to pursue its development priorities without placing an excessive burden on future generations.