Saraki denies automatically approving international loans during his tenure as Senate President

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Former Senate President, Dr Bukola Saraki, has said he championed fiscal accountability and reforms during his tenure as head of the National Assembly, insisting that Nigeria’s low tax-to-GDP ratio remains one of the country’s biggest obstacles to sustainable development.

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Saraki stated this on Tuesday while speaking at the Global Strategic Advisory Group meeting in Villa La Collina, Lake Como, Italy, where he participated in a panel discussion on “Development Policies—Withdrawal of the U.S. from International Development: Opportunities and Challenges.”

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Reflecting on his years as Senate President between 2015 and 2019, Saraki said the Eighth National Assembly prioritised fiscal oversight through open budget hearings, scrutiny of government revenues and reforms in the petroleum sector.

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He said, “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.

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

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Saraki also recalled challenging the executive over foreign loan requests, insisting that the National Assembly had a responsibility to scrutinise the purpose and impact of every borrowing proposal.

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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.

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

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The former Kwara State governor argued that Nigeria’s tax-to-GDP ratio of about six per cent is among the lowest globally for an economy of its size, warning that continued reliance on foreign aid and external borrowing would undermine the country’s economic sovereignty.

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According to him, African countries must strengthen domestic resource mobilisation and build stronger institutions instead of depending on development assistance.

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He said, “Tax-to-GDP ratios across Sub-Saharan Africa average approximately 15.6 per cent, compared to an OECD average of 34 per cent.

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“Nigeria’s is approximately six per cent, one of the lowest in the world for an economy of its size.

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“This is a political choice. And political choices can be changed by political leadership.”

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The former Senate President noted that Africa’s future depended on moving away from donor dependency towards genuine partnerships anchored on trade, industrialisation, value addition and institutional development.

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He argued that while the reduction in United States development assistance posed immediate humanitarian and financing challenges, it also offered Africa an opportunity to redefine its development model.

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According to him, the continent should leverage growing partnerships with Europe, China, India, the Gulf states and other emerging economies to negotiate mutually beneficial relationships rather than replacing one form of dependency with another.

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Saraki further urged African governments to prioritise transparent budgeting, legislative oversight, judicial independence, credible elections and fiscal accountability, describing strong institutions as the foundation for sustainable economic growth.

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He also called for accelerated implementation of the African Continental Free Trade Area, increased investment in youth, education and innovation, and greater mobilisation of domestic and diaspora capital to drive Africa’s development agenda.

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The former Senate President concluded that Africa must seize the current geopolitical shift to build a development architecture driven by production, innovation, self-reliance and strategic partnerships instead of aid dependency.

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