Reps Begin Probe Of N121.67trn Loans Obtained Under Tinubu Govt
The House of Representatives has mandated its Committee on Aids, Loans, and Debt Management to carry out a comprehensive audit of loans obtained under the administrations of President Bola Tinubu.
The house frowned at the sudden rise in Nigerian debt which it said stands at N121.67bn in the current dispensation, quoting statistics from the Debt Management Office (DMO).
The decision to investigate the Tinubu government followed the adoption of a motion moved by Rep. Lanre Okunlola at the plenary on Thursday titled, ‘Need to Ensure Public Debt Oversight on the Federal and State Governments Loans and Proper Utilization of Borrowed Fund’.
In essence, the house tasked the committee to carry out oversight of all loans obtained by the federal and state governments since Tinubu came to power, and expressed worry that some of the loans may have been obtained without parliamentary approval.
Quoting the data recently released by the DMO as of March 31, on Nigeria’s public debt profile, which includes both external and domestic debt, he said, the country’s debt has risen too sharply which is a cause for concern.
He said the data showed that the debt has grown significantly and stands at N121.67trn ($91.46 billion).
Rep Okunlola said the loans were sourced from both domestic and international lenders by the federal and state governments to fund various projects and budget deficits.
“Nigeria’s debt rose by N24.33trn in three months from N97.34trn ($108.23bn) in December 2023 to N12 1.67trn ($91.46bn), according to the same report.
“Although borrowing is a vital means for financing development, unchecked debt accumulation poses serious risks to Nigeria’s fiscal stability and future economic growth,” he emphasised.
He pointed out that “the 1999 constitution of the Federal Republic of Nigeria as amended, the Fiscal Responsibility Act (2007), and the Debt Management Office Establishment Act (2003) mandates the National Assembly to approve all government loans and ensure their proper utilization.
“Over 40% of developing countries, including Nigeria, currently spend more on debt services and repayments of loans, leading to inefficiencies in government finances at the expense of funding critical sectors of the economy such as education, healthcare, infrastructure, and social policy”.
The lawmaker lamented that there were growing concerns regarding the lack of proper oversight and transparency in the management and utilisation of borrowed funds by both the federal and state governments.
The committee was mandated to report within four weeks for further legislative action.
Reps Begin Probe Of N121.67trn Loans Obtained Under Tinubu Govt is first published on The Whistler Newspaper