By Cynthia Abah
A fierce debate is expected in the House of Representatives on Tuesday as lawmakers gear up to deliberate President Bola Tinubu’s proposal to secure a $2.2 billion (N1.77 trillion) external loan.
The loan, intended to address a N9.7 trillion budget deficit in the 2024 fiscal year, has already received Senate approval and now awaits the Green Chamber’s verdict.
The Deputy Spokesperson of the House, Mr. Philip Agbese, expressed confidence in the loan’s approval, stressing its alignment with capital projects as detailed in the president’s letter to the National Assembly.
According to Agbese, committees have commenced a thorough review of the proposal to ensure due diligence.
He underscored the government’s commitment to fiscal responsibility, noting that previous borrowings had funded key infrastructure projects in sectors such as healthcare, education, and agriculture.
Agbese defended the administration’s borrowing strategy, stating, “Despite our current debt profile of N136 trillion, this government has shown prudence in managing resources.
The loan will be directed exclusively toward critical investments and will not be mismanaged.”
However, opposition lawmakers have expressed serious reservations. Kingsley Chinda, leader of the Minority Caucus, questioned the necessity of the loan and its potential impact on Nigeria’s rising debt profile.
“Borrowing should be the last resort, not the default option,” Chinda said, demanding clear details on the loan’s purpose and repayment strategy.
Bamidele Salam, Chairman of the Public Accounts Committee, echoed similar concerns, cautioning that the loan should only be approved under favorable terms and for urgent infrastructure needs.
Labour Party lawmaker Afam Oghene voiced alarm over the country’s mounting debt burden, warning of the potential misuse of borrowed funds.
“The government must ensure these funds are deployed for productive purposes, not for consumption,” Oghene remarked, adding that the move could exacerbate economic hardship already intensified by subsidy removals.
Despite these objections, proponents of the loan argue that it is essential for stimulating economic growth and bridging Nigeria’s infrastructure deficit.
They contend that without it, progress in critical sectors could stall, further deepening the country’s fiscal challenges.
As the House prepares to vote on the proposal later in the week, the decision will not only determine the immediate fate of the $2.2 billion loan but could also set the tone for broader discussions on Nigeria’s fiscal policy and debt management strategies.
