The House of Representatives has mandated its Committee on Aids, Loans, and Debt Management to carry out a comprehensive audit and oversight of all loans obtained by the federal and state governments since 1999 which amounted to over N121.67 trillion.
The resolution followed the adoption of a motion moved by the member representing Surulere II federal constituency of Lagos State, Hon. Lanre Okunola, at plenary on Thursday.
Moving the motion, Okunola said the data released by the Debt Management Office (DMO) as of March 31, 2024, showed that Nigeria’s public debt profile stood at N121.67 trillion ($91.46 billion).
He also noted that the country’s debt rose by N24.33 trillion in three months from N97.34 trillion ($108.23 billion) in December 2023 to N121.67 trillion ($91.46 billion), according to the same report.
The lawmaker further noted that although borrowing is a vital means for financing development, he, however, noted that unchecked debt accumulation posed serious risks to Nigeria’s fiscal stability and future economic growth.
He admitted the growing concerns over the lack of proper oversight and transparency in the management and utilisation of borrowed funds by both the Federal and State Governments.
Okunola expressed worry that, “many loans from state governments are drawn from commercial banks and certified by
the Federal Ministry of Finance are contracted without full compliance with constitutional requirements for National Assembly approval.
“There are instances where borrowed funds are not effectively utilised for their intended purposes, undermining the benefits of such loans to the citizens.
“Contrary to the illusory image of an oil rich country, Nigeria is a heavily indebted country with a huge debt portfolio,” hence “the need for a strong financial oversight to ensure effective use of sourced loans and an effective delivery of public services through thorough and transparent utilisation of funds.”
