Ado-Ekiti - Legal luminary and founder of Afe Babalola University, Ado-Ekiti (ABUAD), Aare Afe Babalola, has expressed deep concern over Nigeria’s growing debt burden, warning that the country’s deteriorating financial reputation is discouraging foreign investment.

Babalola made the remarks over the weekend in Ado-Ekiti during the 2025 International Leadership Conference on Leadership, Governance, Sustainable Change, and Wealth Creation (2.0), jointly organised by ABUAD, Nigeria Trinity Western University (TWU), Vancouver, Canada, and the African Centre for Leadership, Strategy, and Development (CentreLSD).

Speaking on the conference theme, “Shaping Transformational Leaders for a Changing World: Tackling Insecurity, Governance and Development,” the elder statesman described the topic as “most appropriate at this time of our development,” lamenting that Nigeria’s debt situation has reached a dangerous level.

According to him, the nation’s rising public debt, now standing at ₦152.4 trillion (approximately $99.7 billion), has made Nigeria unattractive to foreign investors and placed immense pressure on the domestic financial sector.

“Records show that Nigeria is now a big debtor country, with total public debt at ₦152.4 trillion or $99.7 billion,” Babalola said. “Consequently, most foreign companies are reluctant to invest in this debtor nation. As I speak to you now, I know that our banks are complaining that the Central Bank is not honouring promissory notes issued by government due to the Federal Government’s inability to pay because of its mounting debt.”

He called for urgent fiscal reforms and responsible economic management to restore investor confidence, financial stability, and sustainable development.

Babalola also cited Section 14 of the 1999 Constitution, reminding leaders of their primary obligation to ensure the security and welfare of the people.

“The main function of a government is contained in Section 14 of the Constitution,” he said. “It states that the Federal Republic of Nigeria shall be a state based on the principles of democracy and social justice. Sovereignty belongs to the people of Nigeria, from whom government derives all powers and authority.”

Delivering a keynote lecture titled “Transformational Leadership in an Insecure and Disruptive Era: Building Ethical, Resilient and Impactful Leaders for Africa,” Dr. Otive Igbuzor, founding Executive Director of CentreLSD, identified transformational leadership as a key solution to bad governance, corruption, unemployment, gender inequality, and environmental degradation.

He urged African governments to promote innovation and merit-based governance, stressing that “transformational leadership rewards integrity, creativity, and performance rather than mediocrity and patronage.”

Igbuzor also recommended that leadership training be institutionalised across all levels of education to build a generation of ethical and visionary leaders capable of driving inclusive growth and reform.

In her address, ABUAD Vice-Chancellor, Professor Smaranda Olarinde, commended the collaborative effort behind the conference, describing it as timely and impactful. She emphasised the need for international, regional, and public-private partnerships to tackle challenges such as insecurity, poverty, hunger, infrastructural decay, and economic instability.

The conference brought together scholars, policymakers, and leadership experts from within and outside Nigeria to explore pathways toward sustainable governance and development across Africa.