Reps Gird Their Loins for Debate on Tinubu’s Request for $2.2bn Loan

A storm seems to be brewing in the House of Representatives this week as members gear up for debate on President Bola Tinubu’s request for a loan of $2.2 billion, about ₦1.77 trillion, to partly finance the ₦9.7 trillion deficit in the 2024 budget. Though the Senate has already given its approval, opposition members in the Green Chamber are likely to oppose the request.

House Deputy Spokesperson, Philip Agbese, said the loan request would scale through the parliament. He told *The PUNCH* that the request was in line with the government’s pledge to develop the nation’s infrastructure and “the Tinubu-led government has been prudent with our resources.” He said the committees concerned were already scrutinising the request, adding that due diligence will inform the consideration process for its approval.

Justifying the Borrowing

Agbese explained that Tinubu’s concentration on critical infrastructure justified the borrowing, since the funds would be committed to capital projects whose benefits would be long-term. “The current government’s fiscal policies are geared towards the protection of taxpayers’ resources, he said, reassuring critics against alleged recklessness in the pace of public spending.

Imo State lawmaker Chike Okafor also defended the loan request, stressing the importance of borrowing for infrastructure investment. “Our country has suffered from under-investment in critical sectors like roads, health, education, and agriculture. Borrowing for these sectors is essential to stimulate the economy,” Okafor stated. However, he opposed borrowing for recurrent expenditures, labeling it as “unsustainable.”

Views from the Opposition

Opposition legislators have, however, expressed worries over the increasing debt profile, now standing at ₦87.38 trillion ($113.42 billion) as of June 30, 2024. In his contribution, a member of the opposition Labour Party, Afam Oghene, demanded more transparency and accountability, adding that linking loans to specific projects remained key. “Nigerians are uneasy about the country’s rising debt and the opacity surrounding the deployment of borrowed funds,” Oghene said.

Bamidele Salam, Chairman of the Public Accounts Committee, added that he would only support the loan if the terms are favorable and tied to urgent infrastructure needs. “Scrutiny is essential to ensure these funds are used judiciously,” Salam noted.

The loan debate comes amid criticism of Nigeria’s borrowing habits, with opposition figures questioning the government’s fiscal discipline. Agbese countered such criticisms, describing the House’s oversight role as robust and patriotic. He dismissed remarks from former Vice President Atiku Abubakar, who had previously accused the National Assembly of enabling executive excesses, calling them “irrelevant.”

Yet, ruling party legislators have come out to support the President, citing the dire state of infrastructure deficit in Nigeria. The House is expected to deliberate on the loan later this week; a decision likely to set the tone for public discourse on the nation’s economic priorities.

As Nigerians monitor the developments keenly, the debate brings to the fore a critical question: how does the government balance the urgency of infrastructure investment with fiscal responsibility?