A showdown is looming in the House of Representatives this week over President Bola Tinubu’s $2.2m (N1.77tn) loan request. The loan, which is intended to fund the N9.7tn deficit in the 2024 budget, has already been approved by the Senate.
The Deputy Spokesperson of the House, Philip Agbese, has expressed confidence that the House will approve the loan request, citing the government’s prudent management of resources. According to Agbese, the loan will be used to execute critical capital projects across the country.
However, not everyone is convinced. The minority caucus of the House of Representatives has warned that borrowing should be the last option, rather than the first resort. Leader of the Minority Caucus, Kingsley Chinda, has called for scrutiny of the loan request, saying that the government must provide clear answers on how the loan will be used and repaid.
Other lawmakers have also expressed concerns about the country’s growing debt profile. Labour Party federal lawmaker, Afam Oghene, noted that Nigeria’s total public debt stock stood at N87.38tn ($113.42bn) as of June 30, 2024. Oghene called for transparency and integrity in the management of public funds.
The debate on the loan request is expected to commence in the House of Representatives this week, with a decision likely to be made later in the week.
