Reps to probe public loans borrowing since 1999

The House of Representatives has resolved to carry out comprehensive audit and oversight of all loans obtained by the Federal and State Governments since 1999 to ascertain the impact of such burden on Nigerians

This resolution followed a motion on notice sponsored by Lanre Okunola (APC, Lagos) on the need to ensure proper public debt oversight on the Federal and State government loans and the proper utilisation of all borrowed funds.

Okunola said data of Nigeria’s public debt profile including external and domestic debt recently released by the Debt Management Office indicate that as of March 31, 2024, showed that public debt in the country has grown significantly over the years at N121.67 trillion ($91.46 billion) with loans sourced from domestic and international lenders by the Federal and State Governments to fund various projects and budget deficits.

He said the same report indicated that Nigeria’s debt rose by N24.33 trillion in three months from N97.34 trillion ($108.23 billion) in December 2023 to N12 1.67 trillion ($91.46 billion), adding that while borrowing is a vital means for financing development, unchecked debt accumulation poses serious risks to Nigeria’s fiscal stability and future economic growth.

Read Also: Reps pass Bill to increase retirement age for health workers for second reading

He stressed the 1999 Constitution, the Fiscal Responsibility Act (2007), and the Debt Management Office Establishment Act (2003) empower the National Assembly to approve all government loans and ensure proper utilisation.

The Lagos Lawmaker further said over 40% of developing countries, including Nigeria, 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.

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