Nigeria’s rising debt profile scaring away foreign investors – Afe Babalola

Nigeria’s Rising Debt Profile and Its Impact on Foreign Investment - Afe Babalola’s Warning

In a compelling address delivered during the 2025 International Leadership Conference held in Ado-Ekiti, Chief Afe Babalola, SAN, founder of Afe Babalola University (ABUAD), issued a stark warning about Nigeria’s escalating debt crisis and its implications for foreign investment and national stability.

The conference, themed “Shaping Transformational Leaders for a Changing World: Tackling Insecurity, Governance and Development,” was co-hosted by ABUAD, Trinity Western University (TWU) in Vancouver, Canada, and the African Centre for Leadership, Strategy and Development (CentreLSD).

Babalola emphasized that Nigeria’s debt burden has reached alarming levels, with the total public debt now standing at ₦152.4 trillion, equivalent to $99.7 billion. He described the country as a “big debtor nation,” a status that he believes is actively deterring foreign investors and placing undue strain on the domestic financial system.

According to him, several Nigerian banks have raised concerns over the Central Bank of Nigeria’s (CBN) inability to honor government-issued promissory notes, a development that further undermines investor confidence.

The legal luminary called for urgent fiscal reforms, prudent economic management, and strategic debt policies to restore trust in Nigeria’s financial ecosystem. He stressed that the government must prioritize the security and welfare of its citizens, citing Section 14 of the 1999 Constitution (as amended), which declares that sovereignty belongs to the people and that governance must be rooted in democracy and social justice.

Babalola’s remarks were echoed by other speakers at the conference. Dr. Otive Igbuzor, founding Executive Director of CentreLSD, delivered a lecture titled “Transformational Leadership in an Insecure and Disruptive Era: Building Ethical, Resilient and Impactful Leaders for Africa.” He argued that Africa’s future hinges on leadership that values merit, integrity, and innovation. Igbuzor advocated for inclusive governance, ethical leadership, innovative education, institutional integrity, and continental collaboration as pillars for national rebirth. He urged the Nigerian government to institutionalize leadership training in schools to cultivate future leaders.

Professor Smaranda Olarinde, Vice Chancellor of ABUAD, also underscored the timeliness of the conference, noting that global and regional partnerships are essential to addressing Nigeria’s multifaceted challenges, including insecurity, poverty, infrastructural decay, and economic instability.

This special report highlights the urgent need for Nigeria to confront its debt crisis head-on, not only to attract foreign investment but also to safeguard its economic future and uphold the constitutional mandate of serving its people.

The voices at the conference converge on a singular message: transformational leadership and sound fiscal governance are indispensable for Nigeria’s sustainable development.