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CIFCFIN Proffers Solution To Nigeria's Rising Debt Burden

BY CHIKA OKEKE, Abuja
Dr. Iliyasu Gashinbaki

The Chartered Institute of Forensics and Certified Fraud Investigators of Nigeria (CIFCFIN) has outlined series of solution to trim down Nigeria's rising debt burden. 

This was even as the institute hinted that the debts spiked due to non-completion or outright abandoned projects by development partners and those funded by donor agencies.

Founder/Chairman, Governing Council of CIFCFIN, Dr. Iliyasu Gashinbaki disclosed this at the 12th direct membership and fellowship award ceremony in Abuja recently. 

News Rider reports that Nigeria's total public debt is projected to hit N187.79 trillion by the end of 2025, as revealed by the Budgit Foundation. It includes both external and domestic debt, with domestic debt, accounting for 53 percent of the total amount.  

Gashinbaki enjoined the Federal Government to immediately initiate a comprehensive forensic performance audit of all donor-funded and development-partner-supported projects across the country to help stamp out fraud in such projects.

He said the audit will pave the way for independent verification that will unearth level of project implementation,  spent fund, misappropriation of funds and abandoned projects, while holding the affected persons responsible for the lacuna. 

The founder assured that such strategy will not only restore public trust and donors’ confidence, but will also be critical in safeguarding Nigeria’s future access to development financing.

Gashinbaki cautioned against Nigeria’s reliance on developmental partners for funding of critical infrastructure caused mounting debts with negligible results, adding that a report published by Corporate Accountability & Public Participation Africa (CAPPA) revealed that the country will repay $6.25 million annually for 40 years (totaling $250 million, excluding interest) for a World Bank-funded water project that failed to deliver.

"The Third National Urban Water Sector Reform Programme approved in 2015, with the aim of improving water access in Ekiti, Bauchi and Rivers States remain inconclusive a decade later as residents in the benefitting localities still rely on water vendors, thereby paying N500-N40,000 monthly for contaminated supplies.

"At Ero Dam in Ekiti State, where a $50 million World Bank loan was invested there to provide clean water for thousands, engineers installed modern pumps, pipelines, and treatment systems but today, those pumps are silent and the pipes dry because nobody factored electricity as the dam needs steady power to function," he added. 

According to him, the Bauchi development partners spent millions laying new pipes but today, half of those pipes are broken and water that trickles through them are contaminated, leaving children sick.

In Rivers State, Gashinbaki informed that the project was stalled after releasing $30 million, which was attributed to conflicts with another loan.

"But here is the cruel twist because  these states must still repay every penny, even though the projects collapsed," the founder lamented.

He said that the deployment of Forensic Performance Audit would phase-out such ugly scenarios. 

Proffering more solutions, he added: "Following the money; tracing every Dollar from loan approval; demanding evidence on why the projects collapsed, stalled or failed and ensuring that those found culpable face the consequences.”    

Gashinbaki informed the new members and fellows of the institute that their work is clearly cut out for them in the face of mounting corruption and other forms of criminality in the country. 

"You should see yourselves as change agents and change makers that have been duly enlisted in the anti-corruption army that will transform Nigeria into greatness," he said. 

The Chairman, Professional Training & Standards (PT&S) of the Institute, Prof. Michael Ayeni said that the training equipped graduating direct members and fellows, with more than just technical skills.

"It shaped their judgment, sharpened their investigative abilities, and prepared them to be key players in combating financial crimes and frauds in both the public and private sectors. 

"Whether they go on to work with corporations, law enforcement agencies, regulatory bodies, or within their firms, the knowledge and discipline they carry with them will serve as a cornerstone of trust in every institution they touch," he said. 

Nigeria's public debt stock which includes external and domestic debt stood at N121.67 trillion (US$91.46 billion) in Q1 2024, according to the National Bureau of Statistics (NBS). 

This was against the N97.34 trillion (US$ 108.23 billion) recorded in Q4 2023, indicating a growth rate of 24.99 percent on a quarter-on-quarter basis.

About 152 inductees, comprising 95 direct members and 57 fellows participated during at the 12th direct membership and award ceremony (NILDS) in Abuja.

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