Babatunji Wusu –
- Rapid Loan Approvals: The National Assembly quickly approved President Bola Tinubu’s $2.2 billion (N1.767 trillion) loan request, contributing to Nigeria’s rising debt, now at N138 trillion.
- Concerns Over Fiscal Oversight: Experts criticize lawmakers for not properly scrutinizing loan requests, urging them to ensure that borrowings are in the nation’s best interest.
- Previous Loan Approvals: This loan follows several fast-tracked loan approvals, including World Bank loans and the securitization of the Central Bank of Nigeria’s advances.
- Constitutional Oversight Responsibility: Legal experts emphasize the National Assembly’s constitutional duty to rigorously evaluate loan requests and ensure they benefit the country.
- Lack of Accountability for Past Loans: Critics argue that the National Assembly has not adequately monitored the use of previous loans or their effectiveness in improving the lives of Nigerians.
- Calls for Greater Accountability: Senior Advocate Ebun-Olu Adegboruwa and others call for greater public demand for accountability from lawmakers to avoid burdening future generations with unpayable debt.
- Weak Legislative Independence: Activists, including Prof. Chris Nwaokobia, warn that the National Assembly has become too aligned with the executive, undermining its role in holding the government accountable and weakening democratic checks and balances.
The National Assembly is under intense scrutiny following its swift approval of President Bola Tinubu’s loan requests, which have contributed to Nigeria’s mounting debt, now reaching N138 trillion. Experts warn that the lack of thorough scrutiny over these borrowings could have dire consequences for the country’s financial stability.
In a recent development, the House of Representatives and the Senate quickly approved a $2.2 billion (N1.767 trillion) loan, just 48 hours after President Tinubu submitted the request. This loan, part of the 2024 fiscal year’s borrowing plan, was presented by Senate Committee Chairman Aliyu Wamakko (APC, Sokoto North) during plenary. Critics argue that the rapid approval undermines the legislature’s responsibility to rigorously assess financial decisions that could impact the nation’s economy.
This loan is only the latest in a series of fast-tracked approvals. Earlier this year, the Senate swiftly approved Tinubu’s requests for significant amendments to the 2024 appropriation bill, including a N6.2 trillion amendment and additional borrowing for emergency expenditures. The National Assembly also recently approved a N819 billion and $800 million World Bank loan and authorized the securitization of the Central Bank of Nigeria’s N7.3 trillion Ways and Means advances.
Experts, including Auwal Rafsanjani, Executive Director of the Civil Society Legislative Advocacy Centre, argue that the National Assembly has failed in its oversight function. According to Rafsanjani, lawmakers should prioritize scrutinizing the executive’s financial decisions rather than approving them unconditionally. Legal expert Victor Opatola added that the constitution mandates the Assembly to carefully assess the necessity and impact of proposed loans, ensuring they align with the country’s best interests.
Critics also highlight the lack of transparency regarding the utilization of previous loans. Professor Sheriffdeen Tella, an economist at Olabisi Onabanjo University, emphasized the need for the National Assembly to evaluate how past borrowings have been spent and whether they have yielded tangible benefits for Nigerians.
Prominent figures, including Senior Advocate of Nigeria Ebun-Olu Adegboruwa, have called on Nigerians to demand greater accountability from their elected representatives, warning that unchecked borrowing could burden future generations with unpayable debts. Adegboruwa noted that loans should only be approved if they provide clear, tangible benefits for the people.
Activist Prof. Chris Nwaokobia criticized the National Assembly for becoming an “appendage of the executive,” arguing that its failure to independently assess executive decisions undermines democratic checks and balances. He also highlighted concerns over the prioritization of non-essential government spending, such as purchasing new presidential aircraft, at the expense of addressing pressing economic issues.
In light of these concerns, stakeholders urge the National Assembly to adopt a more participatory approach to governance, consulting with Nigerians before approving major financial decisions. This would ensure that the government’s borrowing is aligned with the needs and priorities of the nation, fostering greater transparency and accountability in Nigeria’s financial management.
