Reps Propose Separate Account For Borrowed Funds

The House of Representatives is deliberating a bill to amend the 1999 Constitution, proposing the creation of a dedicated account for all borrowed funds, grants, and credits received by the Federal Government.

Sponsored by Mansur Soro, representing Darazo/Ganjuwa Federal Constituency, Bauchi State, the bill aims to enhance transparency and accountability in the use of borrowed funds.

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EKO HOT BLOG reports that currently under review by the Committee on Constitution Review, the legislation advocates separating borrowed funds and Internally Generated Revenue (IGR) to improve tracking and utilization.

Explaining the rationale, Soro said, “Combining borrowed funds and IGR in a single account obscures tracking and raises accountability concerns. The bill provides for periodic reporting on the utilization of borrowed funds.” He noted that the proposal comes as Nigeria’s national debt surpasses ₦134 trillion, necessitating greater oversight.

Soro and Isiaka Ibrahim, representing Ifo/Ewekoro Federal Constituency, Ogun State, also propose amendments to empower the National Sovereign Investment Authority (NSIA) and abolish the Excess Crude Account (ECA). Soro explained that excess revenue from hydrocarbon sales should be managed by the NSIA for investment on behalf of the federation, ensuring transparency and financial prudence.

“The Federal Government’s use of funds in the ECA for unauthorized purposes like arms procurement should be stopped,” Soro emphasized. “If we fail to save adequately for the future, posterity will judge us harshly.”

Soro also urged the Tinubu administration to curb reckless borrowing, close revenue leakages, and address corruption in public spending. “Loans should be taken only when absolutely necessary. With our financial crisis deepening, it is time to apply the brakes,” he said.

The proposed legislation underscores the House’s commitment to promoting fiscal responsibility and safeguarding the nation’s economic future.

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