The National Assembly has come under intense scrutiny following its quick approval of President Bola Tinubu’s loan requests, pushing Nigeria’s debt profile to an unprecedented N138 trillion.
Stakeholders and economic experts have expressed concerns over the legislature’s perceived lack of due diligence in evaluating the nation’s borrowing plans, warning of dire consequences for Nigeria’s economy.
Rapid Loan Approvals Under Fire
In November, the Senate and House of Representatives approved President Tinubu’s $2.2 billion (N1.77 trillion) loan request within 48 hours. This loan, embedded in the 2024 fiscal year’s external borrowing plan, was presented in a report by Senator Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debts.
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While Senate President Godswill Akpabio described the loan as a critical component of the administration’s fiscal strategy, critics argue that the expedited approval reflects a troubling lack of legislative oversight.
Mounting Debt and Legislative Endorsements
As of June 2024, Nigeria’s public debt stood at N134 trillion. However, with the latest borrowing approvals in July and November, the debt has now reached N138 trillion.
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Key loans approved by the legislature include the securitisation of N7.3 trillion in Central Bank Ways and Means advances and $7.8 billion earmarked for the 2022-2024 borrowing plan. Additionally, a $800 million World Bank loan and N500 billion for subsidy removal palliatives have raised questions about accountability and the actual benefits to Nigerians.
Criticism of Oversight Failures
Civil society organisations and economic analysts have accused the National Assembly of neglecting its oversight duties.
Auwal Rafsanjani, Executive Director of the Civil Society Legislative Advocacy Centre (CISLAC), expressed disappointment in the legislature’s role. “Lawmakers have become mere rubber stamps, approving loans without scrutinising their necessity or potential impacts. This undermines their constitutional responsibility to provide checks and balances,” Rafsanjani said.
Legal expert Victor Opatola echoed this sentiment, emphasizing that the Assembly must interrogate financial requests before granting approval. “The National Assembly is constitutionally empowered to evaluate loan proposals. This includes verifying the effective use of previously borrowed funds before approving new ones,” he stated.
Economic Risks of Rising Debt
Economists have warned of severe repercussions if Nigeria’s borrowing spree continues unchecked. Professor Sheriffdeen Tella of Olabisi Onabanjo University stressed the importance of ensuring that loans are effectively utilised.
“It is troubling that loans are consistently approved without clear evidence of their impact on infrastructure and economic development,” Tella said. “Unchecked borrowing risks plunging the economy into long-term financial instability.”
Other experts highlighted concerns about the mismanagement of borrowed funds and the lack of transparency in their utilisation.
Calls for Accountability and Fiscal Discipline
Observers argue that the National Assembly must take its oversight role seriously to prevent further economic decline. This includes scrutinising loan requests, ensuring transparency in fund allocation, and holding the executive accountable for mismanagement.
The rising debt burden has sparked widespread calls for the legislature to prioritise the interests of Nigerians over political expediency.
