A showdown looms in the House of Representatives this week between lawmakers elected on the platform of the ruling party and their opposition counterparts over the $2.2m (N1.77tn) loan request by President Bola Tinubu. The Courage.
This is as the Deputy Spokesperson of the House, Mr Philip Agbese has declared that the Green Chamber will have no trouble approving external borrowing request from President Bola Tinubu, Deputy Spokesman of the Green Chamber, Congressman Philip Agbese has said.
President Tinubu’s loan request was contained in a letter transmitted to the parliament and read by the Speaker of the House of Representatives, Tajudeen Abbas, during Tuesday’s plenary.
If approved, the President said the loan would fund the N9.7tn deficit in the 2024 budget.
The Senate has already approved the loan request, with the House expected to debate same ahead of its approval later in the week.
The Benue lawmaker who doubles as the Deputy Chairman, the Committee on Media and Publicity, advanced reasons the House will not hesitate to follow the footsteps of the Senate in granting the request of the President to borrow externally to fund the budget deficit.
According to him, the House will approve the loan request as long as it is meant for the execution of capital projects across the country as stipulated in the letter transmitted to the National Assembly by the President.
“The Tinubu-led government has been prudent with our resources. We will approve the loan request without hesitation,” he said, adding that the request will be treated in conformity with standing procedures.
“I can tell you that the relevant Standing Committees have commenced scrutiny of the loan request ahead of the consideration by the House. But I assure Nigerians that as their representatives, we will abide by strict standard procedures in doing our job as far as this request is concerned,” he said.
Debt burden
Although Nigeria’s total public debt currently stands at N136tn, Agbese justified the President’s quest to borrow more, saying, “The kind of critical infrastructure we have seen the current government investing their scarce resources on are encouraging. From the Honourable Minister of Finance to the Accountant General’s Office, we have seen fiscal policies that aim to safeguard taxpayers’ resources.”
He added that just as past approvals by the parliament were done in line with due consultation with other relevant stakeholders and experts, “The situation would not be different this time.”
On what has changed since the inauguration of the incumbent All Progressives Congress-led administration, Agbese who represents Ado/Ogbadibo/Okpokwu Federal Constituency of Benue State, noted that “the executive is enhancing our budget system in terms of priorities.”
While declaring that “it may not be far from the truth that past administrations took foreign loans to spend on disposables,” he insisted that “the 10th parliament is carrying out its oversight functions to see that every penny counts in the overall interest of our people.”
Some lawmakers saying that some state governors appeared to have changed their rigid stand on Tinubu’s tax reform bill, now before the parliament for consideration, the lawmaker added that the resilience of legislators may have informed the development.
“Many (governors) are doing so because they have seen the resilience of the parliament to do what is right for Nigerians. This is what you get where there’s patriotism above personal and selfish interest of just a few entities.
“The House of Representatives under the leadership of Rt Hon Tajudeen Abass has done something novel and Nigerians are equally commending his leadership. There’s no doubt that our approach to inviting the key drivers of the tax reforms in Nigeria and doing so at the same time with our in-house experts, has changed the narrative completely in Nigeria,” he added.
In a veiled jibe at former Vice President Atiku Abubakar, who in July described the National Assembly as an enabler of executive recklessness, Agbese said Nigerians “don’t take him seriously, so, the parliament won’t be bothered about his opinion which was probably expressed from abroad or somewhere in Dubai.
“The only time that politician won an election was when another candidate from the south carried him on his back as a running mate. The only thing he sees about Nigeria is when an election will take place.”
The lawmaker assured Nigerians that when granted, the loan would be used for the intended purpose, saying, “The House of Representatives will ensure that such monies if approved are not diverted. What we understand the President is doing is repositioning critical institutions for optimum performance as well as delivering on infrastructure that will stand the test of time.
“It’s possible to extend the lifespan of the 2024 budget to ensure that ongoing critical projects receive the desired attention and are completed.”
Also speaking, an APC lawmaker from Imo State, Chike Okafor, said the loan request by the President was in order.
He said, “Our country in the past years suffered from under-investment in the very critical sectors that stimulate the economy. How much of our resources go to funding/financing infrastructure in such critical things like roads, health, education, and agriculture? Any economy that fails to sustain good investment in the above critical sections of the economy is creating short and long-term deficits in those areas.
“What do you do if/when your current revenue and receipts are inadequate to fund the necessary and required investments necessary to sustain the stimulation of your commerce and economy? You resort to borrowing, especially if/when you reserve the capacity to do so.”
He added, “What I do not support is borrowing to fund ordinary appetite. By this, I mean borrowing just to fund recurrent expenditures. Once a borrowing is geared towards the funding of critical capital items, then we’re moving in the right direction.”
Meanwhile, the minority caucus of the House of Representatives has warned that the provision for deficit financing in the 2024 budget is not automatic, adding that borrowing should be the last option rather than the first resort.
The leader of the Minority Caucus in the House, Kingsley Chinda, said, “We no doubt provided for the executive to borrow in the 2024 budget, but it’s not automatic. Borrowing should not be the first resort. It should be the last option, particularly when borrowing with interest.”
Chinda, who represents Obio/Akpor Federal Constituency of Rivers State, added that in activating the loan option, some questions need to be asked.
“What did we get as income, and how was it applied that we required borrowing? What efforts have we made to raise funds without borrowing and what are the results? Is the borrowing very necessary?”
He added, “What are the specific projects you intend to fund with the money? What are your repayment plans? This information must be cogent and verifiable.”
The Peoples Democratic Party lawmaker noted that “it is only when these questions are answered positively that we can consider the loan,” or else, “The loan will be an additional burden on the government, and the people of Nigeria and should be avoided as a fish should avoid a bait.”
On his part, the Chairman of the Public Accounts Committee, Bamidele Salam, gave a condition to support the loan approval.
“I personally think that the best approach is to scrutinise the loan request. I will only support it if the loan terms are favourable and only if the money will be spent on urgent critical infrastructure for which funding cannot be sourced elsewhere,” he said.
Debt profile worrisome
On his part, a Labour Party federal lawmaker from Anambra State, Afam Oghene, also expressed worry over the nation’s growing debt profile.
Saying, “Many Nigerians are worried about the Presidency’s repeated requests for loan approvals, as well as the country’s growing loan profile. The concern is not just about the loans themselves, but also about the transparency and integrity of how the funds are being deployed and the projects they are attached to.”
Oghene, who represents Ogbaru Federal Constituency of Anambra State, stated, “As of June 30, 2024, Nigeria’s total public debt stock stood at N87.38tn ($113.42bn). This is a significant increase from previous years, and it is understandable that many Nigerians are uneasy about the trend.”
He added that the opposition would continue to ask relevant questions in relation to the demands for good governance.
“The opposition parties are right to question the propriety of these loans, especially given the country’s economic difficulties. But you know that in a democracy, the majority always has its way. Regardless, it is crucial that the government exercises prudence and discipline in handling public funds and ensures accountability and integrity in managing the country’s wealth.
“Ultimately, however, it is up to the government to address these concerns and provide transparency about the loans and how they’re being used. As citizens, it is essential to continue demanding accountability and ensuring that the country’s resources are being managed in the best interest of the people,” he stated.
Oghene added, “As it stands today, it is the President Tinubu-led administration that exercises the mandate of the people until 2027, and all we can do, as opposition political leaders, is to offer alternate viewpoints regarding government policies and actions, so that the citizenry would, going forward, be in a position to make informed decisions when the next election cycle comes.
“In the Labour Party, we have always propagated the concept of borrowing for productive purposes, rather than for consumption. For instance, what specific projects are the latest borrowing plans tied to? In the face of the current hardship occasioned by the subsidy removal regime, would the people be subjected to further impoverishment, or will the loans be channelled to the economic rejuvenation of the country?”
