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The House of Representatives has tasked its Committee on Aids, Loans, and Debt Management with conducting a thorough audit and oversight of all loans obtained by federal and state governments since the start of the current democratic era, which total N121.67 trillion.
The committee is expected to report back within four weeks for further legislative action.
This decision followed the adoption of a motion presented by Rep. Lanre Okunlola during Thursday’s plenary, titled “Need to Ensure Public Debt Oversight on the Federal and State Governments Loans and Proper Utilization of Borrowed Fund.”
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Presenting the motion, Okunlola referenced data recently released by the Debt Management Office (DMO) as of March 31, 2024, regarding Nigeria’s public debt profile, encompassing both external and domestic debt.
He stated, “Nigeria’s debt rose by N24.33 trillion in three months from N97.34 trillion ($108.23 billion) in December 2023 to N121.67 trillion ($91.46 billion), according to the same report.
Although borrowing is a vital means for financing development, unchecked debt accumulation poses serious risks to Nigeria’s fiscal stability and future economic growth.”
Okunlola emphasized that the 1999 constitution of the Federal Republic of Nigeria as amended, the Fiscal Responsibility Act (2007), and the Debt Management Office Establishment Act (2003) mandate the National Assembly to approve all government loans and ensure their proper utilization.
He noted, “Over 40% of developing countries, including Nigeria, currently 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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The lawmaker expressed concern about the increasing lack of oversight and transparency in the management and utilization of borrowed funds by both federal and state governments.
