Nigeria Records Low Rating in Global Debt Transparency Review
Nigeria has been rated low in transparency, accountability, oversight, and public participation in its national budget processes, as revealed by the Open Budget Survey (OBS) 2025. This assessment, based on publicly available information from January 1, 2023, to December 31, 2024, highlights significant gaps in four key areas: legal and institutional framework, debt transparency, debt oversight, and public participation. The findings indicate that these systems do not yet function in a manner that makes debt accountability clear, consistent, and accessible to the public.
IBP Calls for Enhanced Public Engagement in Debt Management
In response to these findings, the International Budget Partnership (IBP) Nigeria has urged the Federal Government to prioritize transparency, accountability, and public participation in Nigeria's debt management processes. Olayinka Babalola, Country Director of IBP Nigeria, emphasized that accountability and transparency in government dealings, particularly concerning debt management, are crucial for building public trust. She made these remarks during a meeting in Abuja on Tuesday, where the OBS 2025 debt accountability module for Nigeria was discussed.
Babalola noted that the assessment uncovered very weak public participation in debt management, with a tenuous link between borrowing and visible outcomes for citizens. This lack of clarity often leads to distrust and suspicion among the populace. She further explained that there is scant evidence of structured opportunities for the public, civil society, media, or other stakeholders to engage in discussions on borrowing plans, debt levels, or fiscal deficits before the government finalizes key decisions, rendering these processes unaccountable.
Debt as a Public Issue Beyond Technicalities
Babalola stressed that public debt has evolved from a technical matter for economists and officials into a public issue impacting fiscal space, service delivery, trust in institutions, and citizens' understanding of how borrowing decisions affect their lives. The Open Budget Survey, she described, is the world's only comparative, independent, and regular assessment of transparency, oversight, and participation in national budgets, widely used to evaluate whether budget systems facilitate public scrutiny.
The debt accountability module, a pilot extension of IBP's work, was developed due to the growing importance of debt in fiscal policies globally, including in Nigeria. Babalola pointed out that while it's one thing to know the amount borrowed, it's another to ensure systems exist for transparency, proper oversight, and public accountability. She acknowledged that Nigeria has the necessary structures, such as public documents and formal rules for the legislature and auditor general, but they do not operate effectively to make debt accountability accessible.
Challenges in Information Accessibility and Oversight
According to Babalola, debt information is not presented in a single, accessible format that allows citizens, legislators, journalists, or analysts to clearly understand borrowing terms and purposes, undermining accountability. She added that oversight is stronger in theory than in practice, with limited evidence of detailed legislative review of debt strategies during budget processes, and a focus more on financial compliance than broader debt management performance.
The IBP identifies three priority areas for reform: transparency, oversight, and participation. Nigeria needs more practical and consolidated disclosure of borrowing information. Babalola concluded that if public debt is shaping the country's fiscal future, there must be clearer and earlier opportunities for citizens and stakeholders to engage on borrowing funds, debt levels, and fiscal trade-offs before decisions are finalized.
Emphasis on Responsible Borrowing
Onyekachi Chukwu, Senior Programme Coordinator for Strategy and Policy at IBP, observed that the real issue is not just the amount borrowed, but whether borrowing decisions are governed transparently, accountably, and in the public interest. He noted that while every country borrows, it is essential to do so responsibly. The OBS is recognized as the world's only comparative, independent, and regular assessment of government transparency, oversight, and budget system participation, underscoring the need for Nigeria to address these deficiencies to foster greater fiscal integrity and public confidence.
