Executive Director of the Civil Society Legislative Advocacy Centre (CISLAC) and Head of Transparency International Nigeria, Auwal Ibrahim Musa Rafsanjani has raised a red flag over Africa’s deepening fiscal crisis, calling for urgent reforms in global financial governance and African debt management.
Speaking at the 2025 Annual Meetings of the International Monetary Fund (IMF) and the World Bank in Washington D.C., Rafsanjani described Nigeria’s debt trajectory as unsustainable and reckless, with most of the country’s borrowings being used for recurrent expenditure rather than productive investments.
‘Most of the loans we take are not for development but for consumption’, Rafsanjani said in an interview on The Policy with Leah, a Nigerian current affairs programme. ‘There is little or no accountability around them. Civil society must be involved in monitoring these debts, especially when even lawmakers lack access to full disclosure’.
Rafsanjani supported calls for debt cancellation, especially in cases where borrowed funds have not resulted in tangible development outcomes. He aligned with recent positions taken by the G24, which described the debt crisis in developing countries as a trap, and stressed that much of Africa’s vulnerability comes from weak governance, corruption, and unchecked illicit financial flows.
He also backed global civil society campaigns seeking reforms at the IMF and the World Bank, criticising what he described as the disproportionate influence of powerful nations over the institutions’ governance structures. He called for greater transparency, inclusiveness, and fairness in global financial decision-making.
Turning attention to Nigeria’s economy, Rafsanjani expressed concern about the country’s overdependence on oil revenue, deteriorating infrastructure, and persistent insecurity, which he said continue to discourage foreign investment. He faulted government policies such as the withdrawal of subsidies in healthcare, education, and transportation, arguing that these measures have worsened poverty levels.
‘It is ironic that while developed nations continue to subsidize critical services, we are removing support for the poor under the guise of reforms’, he said.
Rafsanjani also stressed the need for strategic investments in science, technology, and education, warning that Nigeria risks being left behind in the global digital economy without adequate support for research and innovation.
‘Without quality and affordable education, our youths cannot compete in the digital economy’, he said. ‘Our universities are underfunded, research is dead, Professors and lecturers are continually finding it hard to survive and laboratories are non-functional’.
He urged government at all levels to adopt Artificial Intelligence (AI) tools to strengthen accountability and transparency in public spending. According to him, AI can enhance fiscal tracking, automate auditing, and improve early detection of financial leakages.
Rafsanjani also urged state governors to focus more on internally generated revenue instead of relying solely on allocations from the Federation Account Allocation Committee (FAAC). He warned that the recent increase in FAAC allocations should be reflected in improved living conditions for citizens, not wasted on ‘elephant projects’ designed to siphon public funds.
‘The fuel subsidy savings must also be transparently accounted for by governors’, he said. ‘These funds belong to the people and must be used to improve healthcare, education, and infrastructure, not to enrich political elites’.
Rafsanjani condemned the high cost of governance in Nigeria and criticised what he called the extravagant lifestyles of public officials. He compared them unfavourably with counterparts in developed nations, who often maintain modest standards.
‘You cannot expect development assistance from abroad while living lavishly at home’, he said. ‘Ministers abroad fly economy class; in Nigeria, one official moves with 20 cars. That kind of waste is unsustainable’.
He concluded by calling on African governments to prioritise sustainable development financing, institutional accountability, and human capital growth. He warned that without comprehensive reforms, the continent risks remaining trapped in a cycle of poverty and debt dependence.
His remarks add to the growing voices from civil society demanding structural change as global finance leaders deliberate on the challenges facing the global economy, particularly in the Global South.