The Nigerian National Assembly has come under intense criticism for its rapid approval of loan requests submitted by President Bola Tinubu.
Concerns are mounting among economic experts and civil society groups about the potential consequences of plunging the nation further into debt without adequate scrutiny.
In less than 48 hours after President Tinubu’s submission, both legislative chambers—the Senate and House of Representatives—approved a $2.2 billion (N1.767 trillion) loan.
The Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko (APC, Sokoto North), presented the report leading to its swift endorsement.
Tinubu justified the loan as critical to his administration’s fiscal strategy for 2024.
In a letter read at both chambers, he emphasized, “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 further reiterated this while reading the letter during plenary.
This latest approval adds to Nigeria’s escalating debt profile. By June 2024, public debt—comprising domestic and external liabilities—stood at N134 trillion.
Additional borrowings in subsequent months pushed the figure to a staggering N138 trillion.
This is not the first time President Tinubu’s loan requests have received speedy clearance.
On July 17, 2024, the Senate considered and approved a N6.2 trillion amendment to the appropriation bill submitted by the President.
Tinubu sought to withdraw N3.2 trillion from the Consolidated Revenue Fund for capital expenditure and another N3 trillion for recurrent expenditure, with approval granted after just two readings in plenary.
Similarly, on December 30, 2023, alongside the passage of the 2024 budget, the Senate approved Tinubu’s request for $7.8 billion and €100 million as part of the Federal Government’s 2022-2024 borrowing plan.
Additionally, lawmakers approved the securitization of the Central Bank of Nigeria’s N7.3 trillion Ways and Means advances to the Federal Government—a controversial provision allowing short-term borrowing from the CBN.
Earlier in July 2024, the Senate also approved $800 million and N819 billion in loans. These funds were earmarked for palliatives and capital expenditures to cushion the effects of subsidy removal, a measure met with mixed reactions from Nigerians.
The Executive Director of the Civil Society Legislative Advocacy Centre, Auwal Rafsanjani, lambasted the National Assembly for failing to fulfill its oversight responsibilities.
He expressed disappointment over what he described as a “blanket approval” of executive requests, arguing, “The lawmakers have become more than rubber stamps by siding with the President at all costs. Their job is to scrutinize and investigate policies, ensuring that every detail is accounted for.”
Echoing this sentiment, legal practitioner Victor Opatola highlighted the constitutional responsibility of lawmakers to interrogate loan requests before approval.
He emphasized the importance of ensuring that previous loans had been judiciously utilized, adding, “The National Assembly must investigate whether these loans have been used effectively to benefit Nigerians. Without evidence of proper utilization, further borrowing is unjustifiable.”
Professor Sheriffdeen Tella of Olabisi Onabanjo University expressed apprehension about the effectiveness of previously approved loans.
He warned that failure to ensure tangible benefits from such borrowings would harm the economy, stating, “It is not in the best interest of the economy if loans are approved without impacting the lives of Nigerians positively.”
Prominent legal advocate Ebun-Olu Adegboruwa (SAN), urged Nigerians to hold their representatives accountable for the rising debt burden.
He noted the troubling trend of legislators rubber-stamping executive borrowing requests, saying, “It is crucial for Nigerians to caution their representatives against practices that will enslave future generations with unpayable debts.”
Adegboruwa also criticized the seeming lack of transparency and suggested that such borrowings might serve private interests rather than public welfare.
He argued, “The legislature must represent the people and ensure any loan taken brings tangible benefits. Proper checks and balances are vital.”
Executive Director of the Niger Delta Budget Monitoring Group, High Chief George-Hill Anthony, highlighted the lack of participatory governance in the loan approval process.
He condemned the exclusion of citizens from critical financial decisions, describing it as political bullying. He stressed, “The pillars of democracy include citizen inclusion through a participatory approach, which is currently lacking in Nigeria.”
Rights activist Prof. Chris Nwaokobia described the National Assembly as an “appendage of the executive” and decried its failure to serve as an independent arm of government. He warned that the legislature’s submissive posture undermines democracy, stating, “The National Assembly, led by Godswill Akpabio and Tajudeen Abass, has become a rubber stamp for the executive, failing to interrogate policies that do not drive economic growth.”
Nwaokobia further criticized the administration’s spending priorities, including expenditures on luxury items, at a time when austerity measures are being imposed on the populace.
As concerns grow over Nigeria’s ballooning debt, experts unanimously call for greater scrutiny of borrowing requests.
They argue that the legislature must fulfill its constitutional mandate to serve as a check on executive excesses. Additionally, they emphasize the need for transparency, public inclusion, and measurable outcomes in loan approvals.
The calls for accountability underscore the urgent need for Nigeria’s National Assembly to prioritize the interests of its citizens over political alignments, ensuring that the country’s financial future is safeguarded.
