I never rubber-stamped foreign loans as Senate President – Saraki

Former Senate President Bukola Saraki asserted that his leadership of the National Assembly prioritized fiscal accountability and reforms, particularly addressing Nigeria's persistently low tax-to-GDP ratio, which he identified as a significant impediment to sustainable development. Speaking at a panel discussion in Lake Como, Italy, Saraki reflected on the Eighth National Assembly's efforts between 2015 and 2019.

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During my tenure as Senate President, we placed strong emphasis on fiscal oversight, introducing open budget hearings, confronting the issue of unremitted revenues held outside the treasury system, and working on petroleum sector governance reform.

He detailed how the assembly implemented open budget hearings, scrutinized government revenues, and pursued reforms in the petroleum sector. Saraki described these actions as difficult but necessary to avoid perpetual external dependency. He also recalled confronting the executive branch over foreign loan approvals, emphasizing the National Assembly's duty to rigorously examine the purpose and potential impact of all borrowing proposals.

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These were not easy fights. But they were necessary ones, because the alternative is permanent external dependency.

Saraki pointed out that many loans were treated as grants, despite the enduring repayment obligations. He highlighted Nigeria's tax-to-GDP ratio, approximately six percent, as one of the lowest globally for an economy of its size, contrasting it with the Sub-Saharan Africa average of 15.6 percent and the OECD average of 34 percent. He characterized this situation as a political choice that could be altered by leadership.

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I experienced this firsthand when, as Senate President of Nigeria, I challenged the executive on foreign loan approvals and received significant political push-back because the system was not designed to support proper scrutiny of purpose or impact.

According to Saraki, Africa's future hinges on shifting away from donor dependency toward genuine partnerships focused on trade, industrialization, value addition, and institutional development. He suggested that the reduction in U.S. development assistance presents both challenges and opportunities for African nations to bolster their domestic resource mobilization and build stronger institutions.

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Many of these loans were accepted as if they were free gifts, yet repayment obligations remained.