Reps set up ad-hoc committee to probe debts owed MDAs, private firms

The House of Representatives on Thursday constituted an ad-hoc committee headed by Hon. Busayo Oluwole Oke (BOO) (APC, Osun) to investigate debts owed to the Federal Government by Ministries, Departments and Agencies (MDAs), private organisations and other state actors.

This followed the adoption of a motion sponsored by Salisu Yusuf and five others at a plenary session presided over by the Speaker, Rep. Tajudeen Abbas.

The House mandated the ad-hoc committee to undertake a comprehensive review of outstanding liabilities owed to the Federal Government, identify all debtors, assess recovery efforts by relevant agencies, and recommend practical measures for the recovery of funds.

Speaking on the motion, Hon. Yusuf raised concerns over Nigeria’s growing debt burden and weakening revenue base, warning that the failure to recover monies owed to the government was worsening the country’s fiscal pressures.

He disclosed that Nigeria’s total public debt stood at N153.29 trillion as of 30 September 2025, attributing the rise to increased domestic borrowing and continued pressure from currency depreciation.

According to him, domestic debt accounts for more than 53 per cent of the total debt stock, while external debt makes up about 47 per cent, with debt servicing consuming nearly 47.85 per cent of government revenue within the first nine months of 2025.

He noted that like many countries, Nigeria had adopted borrowing and other fiscal measures in the aftermath of the COVID-19 pandemic to stabilise the economy.

According to him, “most countries around the world, including Nigeria, had recourse to borrowing and other monetary policy tools to address economic challenges.”

He added that while some of these measures had contributed to relative macroeconomic stability, including improvements in currency performance, greater attention was still needed on revenue recovery.

He expressed concern that successive governments had focused more on borrowing and debt servicing while leaving substantial sums owed to the Federal Government uncollected.

“The Federal Government of Nigeria is owed huge sums of money within and outside the country, including judgment debts,” he said.

According to him, “these funds are held by state and non-state actors, as well as Ministries, Departments and Agencies of government.”

He further recalled the establishment of the Presidential Initiative on Continuous Audit in 2015, designed to strengthen financial oversight and improve accountability in public expenditure.

According to him, the initiative was aimed at enhancing efficiency in revenue management and ensuring proper monitoring of government finances.

He cautioned that the continued failure to recover outstanding debts was placing additional strain on public finances and contributing to Nigeria’s fiscal challenges at a time of rising expenditure demands and infrastructure gaps.

Following the adoption of the motion, the House directed the Hon. Oke-led committee to submit its findings within four weeks for further legislative action.

The development comes amid growing concerns over Nigeria’s debt sustainability, with rising calls for the Federal Government to prioritise revenue recovery as a means of reducing fiscal pressure without increasing the tax burden on citizens already facing inflation and high living costs.