Uganda faces debt risks as lawmakers seek fiscal expertise in Nigeria

The Bank of Uganda has issued warnings regarding the nation’s projected public debt path, noting that the proposed fiscal framework for FY2026/27 to FY2030/31 may be at risk. The central bank cautioned that debt levels could face pressure if economic growth underperforms, borrowing costs increase, or if the government fails to implement planned fiscal consolidation.

According to the Bank of Uganda, total public debt could rise to approximately Shs158.6 trillion, representing about 57.7% of non-oil GDP. The bank suggested that the current debt trajectory needs revisiting, as the starting figures may not accurately reflect the country’s actual debt position. Additionally, the central bank advocated for a broader definition of public debt to include Shs7.6 trillion in securitised arrears accumulated after the Covid-19 pandemic.

In a related effort to manage national finances, members of Uganda’s Parliamentary Committee on National Economy have traveled to Nigeria for a five-day training workshop. Organized by the National Institute for Legislative and Democratic Studies (NILDS), the program aims to enhance the capacity of Ugandan lawmakers to scrutinize government borrowing, loan guarantees, and public expenditure. The delegation expressed a desire to learn from Nigeria’s democratic and fiscal management experiences to ensure borrowed resources are used effectively for citizens.