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The National Assembly has been criticized over its early approval of loan requests submitted by President Bola Tinubu.
Experts warned that the country's continuing debt crisis without checking could put the country in serious trouble.
Both the House of Representatives and the Senate quickly approved the $2.2 billion (N1.767tn) loan request barely 48 hours after President Tinubu made the request.
The approval followed the presentation of a report by Aliyu Wamako (APC, Sokoto North), chairman of the Senate Committee on Local and Foreign Debts, during the plenary session.
In a letter read during Tuesday's Senate and House of Representatives plenary session, Tinubu explained that the loan was integral to his administration's fiscal strategy for the coming year.
“The President’s request for $2.2bn, equivalent to N1.77tn, is already contained in the external borrowing plan for the 2024 financial year,” Senate President, Godswill Akpabio, said while reading the letter.
As of June 2024, Nigeria's public debt which includes external and domestic debt stood at N134tn.
With additional loans in July and November, the total debt climbed to N138trn.
Previous debts passed by the N'Assembly
On Wednesday, July 17, the Senate gave urgent consideration to Tinubu's request for a N6.2tn Appropriation Amendment Bill.
In a letter to the Senate, Tinubu demanded the withdrawal of N3.2tn from the Consolidated Revenue Fund for capital expenditure.
The President also demanded the withdrawal of another N3tn from the Consolidated Revenue Fund for additional recurring expenditure for the year ending December 31, 2024.
For expedited consideration, the Senate gave the requests, presented as executive bills, first and second readings, and ordered its committees on Appropriations and Finance to put more legislative input into them and report back within a week.
On December 30, 2023, alongside the budget, the Senate approved Tinubu's request to borrow $7.8 billion and €100m as part of the federal government's 2022 – 2024 borrowing plan.
Similarly, the Red Chamber also approved Tinubu's request to secure the N7.3trn Ways and Means advances of the Central Bank of Nigeria to the Federal Government.
The Ways and Means provision allows the government to borrow from the CBN in the event it needs short-term or emergency financing to support delayed government estimated cash receipts of the fiscal deficit.
Also, on July 13, the Senate approved N819bn and another $800m World Bank loan request by Tinubu.
The amount was said to be drawn from the N819bn Supplementary Appropriations Act, 2022.
The breakdown includes N500bn for palliative and other capital expenditure to mitigate the impact of the recent subsidy removal policy.
In separate requests to both houses of the National Assembly, President Tinubu sought approval from the Senate and House of Reps for an $800 million loan and a N500 billion palliative for the removal of petrol subsidy.
Experts criticize N'Assembly
Auwal Rafsanjani, executive director of the Civil Society Legislative Advocacy Centre, said the National Assembly had failed in its oversight duties.
Rafsanjani argued that it is regrettable that lawmakers have chosen to side with the executive rather than scrutinize its activities.
He said, “It is quite unfortunate that the MPs completely approve the demands of the President. He has become more than a rubber stamp, ensuring the President's favor at all costs.
“Their job is to scrutinize the President's policies and ensure that all details are presented before giving approval. They must also ensure that things are done correctly. “They must keep an eye on the executive and put the interests of Nigeria and Nigerians first.”
Furthermore, Victor Opatola, a legal practitioner, stressed the constitutional responsibility of the National Assembly in approving loans, stressing that lawmakers must fully assess both the need and impact of such financial requests.
According to Opatola, the National Assembly had a clear mandate to scrutinize the proposed loans and ensure that they were in the best interests of the country.
“The National Assembly has the constitutional authority to approve such loans,” he said. They also have the constitutional right to inquire about the need for these loans and to determine whether it is necessary to take on additional loans at this stage.
He further said that the drafters of the Constitution of Nigeria did not envision a rubber-stamp assembly, but an assembly that would be rigorous in its oversight.
“He envisioned a National Assembly that was inquisitive, investigative and hard-working,” he said.
“Given the power vested in him by the Constitution, this power should be invoked when the President seeks approval for a loan.”
Opatola stressed that lawmakers must ensure that past loans were used effectively for their intended purposes.
“The National Assembly should assess how past loans have been used. Is there any evidence that these loans have been used judiciously for the benefit of the people?
“If there is no concrete evidence that loans are being performed effectively, or if there are concerns that funds have been misused, it is the responsibility of the National Assembly to fully assess the use and purpose of any new loan request. Please check with.”
Also, Sherifdeen Tella, a professor of economics at Olabisi Onabanjo University, said, “We should be interested in how effective the loans that were approved earlier are. It is not in the good interest of the economy if loans are sanctioned and not used effectively to impact the lives of Nigerians.
'Make representatives accountable'
Speaking on the issue, a senior lawyer of Nigeria, Ebun-Olu Adegboruwa, called on Nigerians to demand greater accountability from their elected representatives over the country's rising debt.
in an interview with saturday punch, Adegboruwa expressed concern over the increasing approval of loans by the National Assembly and State Houses of Assembly, warning that such borrowing could burden future generations with unpaid debts.
“It is important for Nigerians to caution their representatives to desist from engaging in practices that will enslave future generations to debt.
“At a time when the government is preaching austerity but continuing to spend recklessly, there is no justification for accumulating debt that does not deliver concrete benefits to the people.”
Adegboruwa also expressed concern over how the National Assembly is approving loans requested by the executive, as well as how state legislatures are approving similar loans to their governors.
He suggested that these approvals may be motivated by personal interests rather than the broader public good.
“The impression being created is that these loans benefit those in power, not the people they represent,” he argued. ,
The lawyer emphasized that the primary role of the legislature is to keep a check on the executive power, ensuring that any decision is in the best interest of the people.
“There should be proper checks and balances. The legislature must represent the people and ensure that any loan or debt taken on behalf of the country has clear, concrete benefits for the people,” Adegboruwa stressed.
Adegboruwa further urged both the National Assembly and State Assemblies to be more diligent in their oversight responsibilities, especially when approving loans that will ultimately impact the finances of the country.
He concluded by reiterating the need for greater transparency and accountability in the country's financial decision making, saying, “No debt should be imposed on Nigerians without clear evidence that it will contribute directly to the welfare of the people.”
Apart from this, rights activist and convener, Country First Movement, Prof. Chris Nwaokobia criticized the National Assembly loan approval spree, and described the government's hand as an “appendage of the executive”.
According to Nwaokobia, the legislature has failed to fulfill its constitutional role of serving as an independent branch of government, but has chosen to be highly aligned with the executive branch.
He argued that it compromised the checks and balances necessary for a healthy democracy, warning that such a situation would weaken democratic institutions and weaken the will of the people.
“If this government were responsible and responsive, if we did not have an administration that is bloated and surrounded by wasteful expenditure, then one could say that borrowing would help the economy grow. Unfortunately, we have a National Assembly that is at best a rubber stamp of the executive, a National Assembly that will not interrogate the executive.
“This government is spending money on things that will not help drive the economy. They are buying presidential planes, they are buying new vehicles, they are spending billions on things that have no immediate impact on the people and the economy, and you will ask yourself if it is not the National Assembly that should have the oversight function. Must do, inquire executive. What are they doing?
“The National Assembly led by Godswill Akpabio and Tajudeen Abass is just plundering the executive. This is a rubber stamp of the executive at best and Nigerians must wake up and demand a vibrant legislature,” Nwaokobia said.
While calling on the National Assembly to always consult Nigerians before approving loan requests from the executive branch of government, the Executive Director, Niger Delta Budget Monitoring Group, High Chief George-Hill Anthony, said lawmakers have the power to ensure good governance. There is a lack of participatory approach required for this.
He described the situation in the country where leaders failed to consider citizens in matters of their governance as political bullying.
“The truth is that the democratic indicators for our country are faltering rapidly,” Anthony said, “They are faltering because some of the creators of the state have lost sight of the fact that citizen inclusion is one of the pillars that supports democracy. It is through a participatory approach that is not the case.”
The budget expert said lawmakers should be held accountable for approving debt for the executive branch of government.
“Apart from making MPs accountable, there should also be an element of bureaucracy and social accountability,” he said.
(TagstoTranslate)Bola Tinubu
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