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Reps Set For Showdown Over Tinubu’s $2.2bn Loan Tuesday

Published

1 month ago

Nov 25, 2024.

A contentious debate is brewing in the House of Representatives as lawmakers prepare to deliberate on President Bola Tinubu’s $2.2 billion (₦1.77 trillion) external loan request to fund the ₦9.7 trillion deficit in the 2024 budget.

The Senate has already approved the loan, leaving the House to make its decision this week.

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EKO HOT BLOG reports that Deputy House Spokesperson Philip Agbese expressed confidence that the Green Chamber would approve the loan, emphasizing that funds would be allocated to critical capital projects.

Agbese highlighted the administration’s commitment to prudent resource management, stating that oversight would ensure transparency and adherence to strict procedures.

However, opposition lawmakers have voiced concerns. Minority Caucus leader Kingsley Chinda argued that borrowing should be a last resort and called for detailed explanations of income, expenditure, and repayment plans.

Similarly, Labour Party lawmaker Afam Oghene described the nation’s rising debt profile, which reached ₦87.38 trillion as of June 2024, as alarming, urging transparency in the deployment of borrowed funds.

Some lawmakers, like APC’s Chike Okafor, defended the borrowing, stating that underinvestment in critical sectors like infrastructure and agriculture has hampered economic growth. Okafor stressed that borrowing for capital projects is necessary to stimulate the economy but cautioned against using loans for recurrent expenses.

Reps Tinubu’s $2.2bn Loan

Public Accounts Committee Chairman Bamidele Salam called for thorough scrutiny of loan terms, emphasizing that approvals should focus on urgent and impactful infrastructure needs.

The opposition remains skeptical, pointing to economic hardships and the need for accountability. Oghene reiterated the importance of borrowing for productive purposes, urging the government to prioritize transparency and fiscal discipline.

As the debate unfolds, the House must weigh the need to address Nigeria’s infrastructure gaps against the risks of increasing public debt. Lawmakers are tasked with balancing the demands of development and economic sustainability while ensuring that citizens’ interests remain paramount.