Economic and financial scholars have raised fresh concerns that Nigeria may be drifting toward another debt crisis unless the Federal Government urgently strengthens its fiscal-management framework, curbs unsustainable borrowing practices, and accelerates long-delayed structural reforms.
This was the consensus at the final virtual symposium of the Capital Market Academics of Nigeria (CMAN), where participants argued that the country’s widening financing gaps, heavy reliance on short-term borrowing and persistent fiscal slippages mirror patterns that previously pushed the nation into debt distress.
Speakers insisted that without a tighter Medium-Term Debt Strategy, clearer fiscal-responsibility rules and a more predictable tax environment, Nigeria’s public-finance system will remain vulnerable to refinancing shocks and exchange-rate volatility.
‘Nigeria showing familiar signs of pre-crisis conditions’
Chairman of the occasion and professor of finance at the University of Lagos, Prof. Wilfred Iyiegbunwe, drew parallels with the pre-2005 debt-relief era, warning that recent trends suggest Nigeria could again be approaching a similar danger zone.
He noted that the rapid accumulation of domestic obligations, dependence on Ways and Means financing, and weak revenue mobilisation place the country in a precarious position.
Iyiegbunwe stressed that borrowing must be redirected strictly toward high-value, growth-enabling infrastructure, backed by transparent reporting and a deliberate shift away from central-bank financing. “This is the moment for frank dialogue and decisive action,” he said, cautioning that the window to avert future distress is narrowing.
Capital-market stakeholders demand stronger fiscal discipline
Beyond debt concerns, the symposium highlighted deep structural weaknesses constraining investment, including high business costs, prolonged policy uncertainty, oil-sector inefficiencies and persistent crude-theft issues.
The group called for an overhaul of regulatory institutions, expansion of Public-Private Partnerships and greater use of alternative financing tools such as Sukuk, Green Bonds and infrastructure guarantees to ease pressure on public finances.
Former Vice-Chancellor of Nasarawa State University, Prof. Mohammed Mainoma, lamented the lack of clarity across sensitive tax areas, noting that ambiguities around cultural exemptions, investment reliefs and offshore-transfer rules undermine compliance and deter long-term capital. He warned that unclear rules risk pushing transactions into informal channels, weakening both revenue and market integrity.
Capital Gains Tax reforms need careful transition — CIS president
President of the Chartered Institute of Stockbrokers (CIS), Oluropo Dada, urged caution in implementing the proposed Capital Gains Tax adjustments, insisting that while the policy is not inherently problematic, abrupt rollout could unsettle investor confidence.
He warned that without proper transition guidelines and stakeholder consultations, the reforms could heighten market volatility at a time when Nigeria requires deeper capital inflows to support growth.
Oyedele: Tax reforms meant to modernise, not punish investors
Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, provided clarity on the tax changes scheduled for implementation in January 2026.
He noted that the reforms are designed to reduce business costs, modernise the tax system and promote fairness—highlighting measures such as CGT exemptions for retail investors, lower corporate-tax rates and the removal of minimum tax for companies.
Oyedele dismissed claims that the recent stock-market volatility was caused by CGT proposals, attributing the fluctuations to misinformation.
He stressed that the reforms aim to make Nigeria’s market more competitive globally, not increase revenue.
