Nigeria’s debt hit 138 trillion in 18 months under Tinubu from Buhari’s N77 trillion as Nigerians blame Senate for speedy approvals

The National Assembly has been slammed over the speedy approval of loan requests presented by President Bola Tinubu.

Experts warned that the continuous plunge of the country into debt without scrutiny could put the country into serious trouble, reports Saturday PUNCH.

Both the House of Representatives and the Senate gave expeditious approval for the $2.2bn (N1.767tn) loan request barely 48 hours after President Tinubu made the request.

The approval followed the presentation of a report by the Chairman of the Senate Committee on Local and Foreign Debts, Aliyu Wamakko (APC, Sokoto North), during plenary.

Tinubu explained that the loan was integral to his administration’s fiscal strategy for the coming year, in a letter read during Tuesday’s Senate and House of Representatives plenaries.

“The Presidential request for $2.2bn, equivalent to N1.77tn, is already enshrined in the external borrowing plan for the 2024 fiscal year,” Senate President, Godswill Akpabio, stated while reading the letter.

As of June 2024, Nigeria’s public debt which includes external and domestic debt stood at N134tn.

With additional debts in July and November, the total debt climbed to N138trn.

Previous loans passed by National Assembly

On Wednesday, July 17, the Senate gave speedy consideration to Tinubu’s request for N6.2tn appropriation amendment bill forwarded to it.

In a letter written to the Senate, Tinubu sought the withdrawal of N3.2tn from the Consolidated Revenue Fund, for capital expenditure.

The president also sought withdrawal of another N3tn from the consolidated revenue fund for additional recurrent expenditure for the year ending on December 31, 2024.

For expeditious consideration, the Senate gave the requests presented as executive bills, first and second readings, and mandated its committees on Appropriations and Finance to inject more legislative inputs into them and report back within a week.

On December 30, 2023, alongside the budget, the Senate approved Tinubu’s request to borrow $7.8bn and €100m as part of the 2022 – 2024 borrowing plan of the federal government.

Similarly, the Red Chamber also okayed Tinubu’s request to securitise the Central Bank of Nigeria’s N7.3trn Ways and Means advances to the Federal Government.

The Ways and Means provision allows the government to borrow from the CBN in the event that it requires short-term or emergency financing to support delayed government projected cash receipts of fiscal shortfalls.

Also, on July 13, the Senate approved the N819bn and another $800m World Bank loan request by Tinubu.

The sum was said to be extracted from the N819bn Supplementary Appropriation Act, 2022.

The breakdown includes the N500bn for palliatives and other capital expenditures to cushion the effect of the recent subsidy removal policy.

In separate requests to the two chambers of the National Assembly, President Tinubu sought approval from the Senate and House of Reps for a $800m loan and N500bn palliative for the removal of petrol subsidy.

Experts criticise National Assembly

The Executive Director of the Civil Society Legislative Advocacy Centre, Auwal Rafsanjani, noted that the National Assembly had failed in its oversight duties.

Rafsanjani argued that it was sad that the lawmakers had chosen to side with the executive rather than scrutinise its activities.

He said, “It’s quite unfortunate that the lawmakers give blanket approval to the president’s demands. They have become more than rubber stamps by ensuring they side with the president at all costs.

“Their job is to scrutinise and investigate the president’s policies, ensure that all details are submitted before they approve. They ought to also ensure that things are done rightly. They ought to be oversighting the executive and pursue the interests of Nigeria and Nigerians first.”

Also, a legal practitioner, Victor Opatola, emphasised the constitutional responsibility of the National Assembly in approving loans, stressing that lawmakers must thoroughly assess both the necessity and the impact of such financial requests.

According to Opatola, the National Assembly had a clear mandate to scrutinise proposed loans and ensure they were in the best interest of the country.

He said, “The National Assembly has the constitutional mandate to approve such loans. They also have the constitutional authority to interrogate the need for these loans and determine whether taking on additional debt is necessary at this stage.”

He further noted that those who drafted Nigeria’s constitution did not envision a rubber-stamp assembly, but one that is rigorous in its oversight.

“They envisaged a National Assembly that is inquisitive, investigative, and diligent,” he noted.

“Given the power vested in them by the constitution, this power must be brought to bear when the president seeks approval for loans.”

Opatola stressed that lawmakers must ensure that previous loans had been effectively used for their intended purposes.

“What the National Assembly ought to do is to assess how previous loans have been utilised. Has there been any evidence that these loans have been used judiciously for the benefit of the people?

“If there is no concrete evidence that the loans are performing effectively, or if there are concerns that the funds may have been misappropriated, it is the responsibility of the National Assembly to thoroughly investigate the use and purpose of any new loan request.”

Also, a Professor of Economics at the Olabisi Onabanjo University, Sheriffdeen Tella, said, “What we should be interested in is how effective are the loans that had been approved before. It is not in the good interest of the economy if loans are approved and it is not effectively used to impact the lives of Nigerians.”

‘Hold representatives accountable’

Speaking on the issue, a Senior Advocate 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 our correspondent, 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 unpayable debts.

“It is crucial for Nigerians to caution their representatives to prevent them from engaging in practices that will enslave future generations with 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 bring tangible benefits to the people.”

Adegboruwa also expressed concern over the way the National Assembly had been approving loans requested by the executive, as well as how state legislatures were granting similar approvals to their governors.

He suggested that these approvals might be motivated by personal interests rather than the broader public good.

“The impression being created is that these loans benefit the individuals in power, not the people they are meant to represent,” he argued, saying, “It is troubling that the National Assembly has been so quick to support the executive’s borrowing without proper scrutiny.”

The lawyer emphasised that the primary role of the legislature was to serve as a check on executive power, ensuring that any decision made was 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 a clear, tangible benefit for the people,” Adegboruwa stressed.

Adegboruwa further urged both the National Assembly and the state legislatures to be more diligent in their oversight responsibilities, particularly when approving loans that would ultimately impact the nation’s finances.

“No loan should be imposed on Nigerians without clear evidence that it will contribute directly to the welfare of the people,” he concluded, reiterating the need for greater transparency and accountability in the country’s financial decision-making.

Also, rights activist and Convener, Country First Movement, Prof. Chris Nwaokobia, criticised the National Assembly loan approval spree, describing the arm of government as an “appendage of the executive.”

According to Nwaokobia, the legislature has failed to fulfill its constitutional role of serving as an independent arm of government, but choose to become overly aligned with the executive branch.

He argued that this compromised the checks and balances essential for a healthy democracy, warning that such a situation would weaken democratic institutions and undermine the will of the people.

“If this government were responsible and responsive, if we do not have an administration that is bloated and overtaken by profligacy, one would have said that borrowing would help grow the economy. 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 aircraft, they are buying new vehicles, they are spending billions on things that do not have immediate impact on the people and the economy, and you will ask yourself if this is not the National Assembly that should have oversight functions, interrogate the executive. What are they doing?

“The National Assembly led by Godswill Akpabio and Tajudeen Abass is just bootlicking the executive. It is at best a rubber stamp of the executive and Nigerians must wake up and demand a vibrant legislature,” Nwaokobia said.

Calling on the National Assembly to always consult Nigerians before approving loan requests from the executive arm of government, the Executive Director, Niger Delta Budget Monitoring Group, High Chief George-Hill Anthony, said the lawmakers lacked the participatory approach needed for good governance.

He described the situation in the country where leaders failed to consider citizens in their affairs of ruling as political bullying.

“The truth is that the democratic indicators for our country are increasingly wobbling,” Anthony said, adding, “They wobble because some creators of the state have lost the fact that the pillars to support democracy include citizens’ inclusion. This is through a participatory approach which is not as it is.”

The budget expert said the lawmakers should be held accountable for approving loans for the executive arm of government.

“Besides holding the parliamentarians accountable, there should be an element of bureaucratic and social accountability,” he said.