House of Representatives Orders Comprehensive Audit of Loans Taken Since 1999

The Nigerian House of Representatives has directed its Committee on Aids, Loans, and Debt Management to conduct a thorough audit of all loans acquired by both federal and state governments since the beginning of the current democratic era in 1999. 

This audit, expected within four weeks, aims to provide insights into the management and application of borrowed funds and ensure transparency in public debt oversight.

This resolution was in response to a motion titled “Need to Ensure Public Debt Oversight on the Federal and State Governments Loans and Proper Utilization of Borrowed Funds,” moved by Hon. Lanre Okunlola during Thursday’s plenary session. 

Okunlola referenced the Debt Management Office (DMO)’s recent report, which placed Nigeria’s total public debt at an unprecedented N121.67 trillion ($91.46 billion) as of March 31, 2024. This reflects a rise of N24.33 trillion within three months, from N97.34 trillion in December 2023.

Okunlola stressed the risks posed by unchecked debt growth, particularly for Nigeria’s economic stability and long-term development. While borrowing can spur growth, he argued, the sheer scale of Nigeria’s debt requires diligent oversight to safeguard critical sectors like education, healthcare, and infrastructure, which currently face budgetary pressure due to rising debt servicing costs. 

“Debt is a cleverly managed re-conquest of Africa aimed at subjugating its growth and development," he noted, calling for “effective and transparent utilization of funds.”

The lawmaker highlighted legal requirements for debt oversight, citing the 1999 Constitution, the Fiscal Responsibility Act (2007), and the Debt Management Office Establishment Act (2003), all of which mandate National Assembly approval for government loans and oversight of fund use. 

Okunlola expressed concern over instances of state governments securing commercial loans with federal certification but without constitutional compliance or Assembly approval.

Beyond approving loans, the House now aims to ensure that borrowed funds serve intended purposes, preventing waste and promoting sustainable development.