Nigeria’s Debt Crisis: A Call for Structural Reform
Dr. Sam Amadi, an Associate Professor and Director of the Abuja School of Social and Political Thoughts, has highlighted the deep-rooted challenges facing Nigeria’s economy, particularly its rising debt burden. According to Amadi, the country’s fiscal problems are not just a matter of borrowing but are fundamentally tied to weak productivity and structural inefficiencies.
Amadi, who previously served as Chairman of the Nigerian Electricity Regulatory Commission, made these remarks during a keynote address at the inaugural webinar hosted by the Think Tank for Sustainable Development in Abuja. The non-partisan think tank aims to foster policy discussions on sustainable development.
He explained that declining productivity is a key factor behind Nigeria’s debt issues, stating, “If you look at declining productivity, even the debt problem is essentially a revenue problem, which is also a productivity problem.” This connection between low output and high debt underscores the urgency of addressing economic inefficiencies.
A Perfect Storm of Challenges
The policy expert described Nigeria’s current situation as a “perfect storm” of weak production, insecurity, and declining state capacity. He noted that the country is experiencing a decline in its productive capacity while simultaneously facing growing security threats and a weakened government structure.
Amadi pointed to several factors contributing to this crisis, including weak institutions and the absence of a clear development strategy. He argued that political interests have consistently undermined long-term economic planning, resulting in a lack of a cohesive national agenda.
“Nigeria has no development agenda because the idea of a development agenda is a national consciousness first… but there’s no elite consensus on development,” he said.
Governance and Institutional Weaknesses
Amadi criticized the persistence of inefficient governance structures, noting that reforms have largely failed to address fundamental economic constraints. He stated, “Nigeria is a country that has tried its best to avoid real change… they flag a problem, but they don’t deal with the results of it.”
He also highlighted structural barriers such as land ownership systems, which he described as limiting access to productive assets and discouraging investment. Additionally, he warned that governance weaknesses extend to the political system, which has increasingly failed to produce leaders capable of driving economic transformation.
“We have moved from hybrid democracy to electoral autocracy… creating a system that selects those who will be in power without necessarily producing development outcomes,” he said.
Poverty and the Crisis of Citizenship
On the issue of poverty and inclusion, Amadi argued that Nigeria’s worsening economic conditions reflect a breakdown in the relationship between the state and its citizens. “The crisis of Nigeria is deeply a crisis of citizenship… more people are rapidly entering poverty,” he said.
He advocated for a shift towards a regional development model that leverages the country’s diversity as an economic asset. By allowing different parts of the country to grow based on their unique strengths, Nigeria could unlock productivity and improve national outcomes.
Regional Innovation and Inclusive Growth
Amadi noted that countries with large and diverse populations have achieved growth by encouraging regional innovation and resource utilization. He suggested that Nigeria could adopt a similar path to drive inclusive development.
He emphasized the need for a new framework for managing diversity, stressing that stronger regional development initiatives could help harness local advantages and stimulate economic expansion across the country.
Rebuilding Trust and Promoting Ethical Governance
The policy expert maintained that sustainable development would depend on rebuilding trust between government and citizens, strengthening social justice, and promoting ethical governance practices.
He stressed that meaningful progress would require a functional social contract, noting that economic growth cannot be sustained without accountability and responsiveness from public institutions.
“Development requires disruption… we need to have the courage and intelligence to revise our institutions, not at the margin, but at the roots,” he added.
A Timely Dialogue on National Issues
In his opening remarks, Chris Abutu Garba, Chairman of the think tank, highlighted the importance of the webinar given Nigeria’s current security and economic challenges, especially as the country approaches another election cycle.
Garba, who was a former military governor of Bauchi State, noted that sustained engagement through policy discussions could help generate practical solutions and guide citizens in making informed decisions.
The webinar, which attracted participants from the diaspora, media, academia, and civil society organizations, is the first in a planned series by the Think Tank for Sustainable Development. The group aims to continue promoting evidence-based dialogue on national development issues.
