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House of Reps Set for Explosive Showdown Over Tinubu’s $2.2bn Loan Request: Will It Pass or Spark Chaos?

By Achimi Muktar

A storm is brewing in Nigeria's House of Representatives as lawmakers prepare for a heated debate over President Bola Tinubu’s $2.2 billion loan request aimed at funding a massive deficit in the 2024 budget. The loan, which would add significant strain to the country's already hefty debt profile, is sparking fierce opposition from the minority caucus, while members of the ruling party show unwavering support.

Tension Builds as Loan Request Heads for Approval

The battle lines were drawn when President Tinubu transmitted his loan request to the National Assembly, seeking approval to borrow the staggering sum to cover Nigeria’s N9.7 trillion budget deficit. The Senate has already given its green light, and now the stage is set for the House of Representatives to follow suit — or challenge the proposal.

Deputy Spokesman of the House, Philip Agbese, a staunch ally of the president, has made it clear that the House will have no problem approving the loan, as long as it is used for capital projects, as stated in the President's letter. He emphasized that the ruling party-controlled House will ensure the loan is used properly, in line with “prudent fiscal policies” that prioritize critical infrastructure.

“The government has been careful with its resources,” Agbese assured, dismissing any concerns about Nigeria’s mounting debt, currently standing at N136 trillion. He argued that investments in infrastructure, such as roads, health, education, and agriculture, are essential for the country's long-term growth. “We’ll approve this loan to fund critical capital projects, and we will ensure every penny is well spent,” he promised.

Minority Caucus Pushes Back

However, opposition lawmakers aren’t buying the rhetoric. Kingsley Chinda, leader of the Minority Caucus, fired back, warning that the loan should not be treated as a given. He expressed concern that borrowing should be a last resort, not the first option, especially when it comes with interest.

“We need to ask important questions before approving such a loan,” Chinda said. “What efforts have been made to raise funds without borrowing? What specific projects will the money fund, and how will it be repaid? If these answers aren’t satisfactory, then this loan will only add more burden to the Nigerian people.”

Chinda, representing Obio/Akpor Federal Constituency in Rivers State, made it clear that unless these questions are addressed, the loan should be rejected. Fellow lawmaker, Bamidele Salam, Chairman of the Public Accounts Committee, also added that he would only support the loan if the terms are favorable and the money is used exclusively for urgent infrastructure projects.

Ruling Party Defends the Loan

While the opposition is digging in its heels, APC lawmakers have rallied behind the President’s request. Chike Okafor, an APC lawmaker from Imo State, argued that Nigeria’s previous lack of investment in critical sectors has left the country with no choice but to borrow.

“When your current revenue can’t cover essential infrastructure, borrowing is necessary,” Okafor said. He also stressed that borrowing for capital expenditure is far more responsible than borrowing for “ordinary appetite,” such as funding routine government operations.

Debt Concerns Grow

As the loan debate heats up, Afam Oghene, a Labour Party lawmaker from Anambra State, voiced growing concerns about Nigeria’s ballooning debt profile, which stood at $113.42 billion as of mid-2024. He questioned whether the government is truly committed to transparency and integrity in the management of these loans, especially in light of the country’s ongoing economic challenges.

Oghene warned that if the loan is not handled with care, it could deepen Nigeria’s financial troubles. “The concern is not just about the loans themselves, but about how they’re being used and whether the projects they fund will truly benefit the Nigerian people,” he added.

What’s Next for Tinubu’s Loan Request?

As lawmakers brace for the showdown, all eyes are on Tuesday’s plenary when the House will debate the loan request. With the ruling party determined to pass the bill and the opposition poised to hold them accountable, it’s clear that this will be a battle for the ages.

The outcome of this debate will have significant implications for Nigeria’s economic future. Will the government’s push for the loan succeed, or will the concerns of the opposition and the growing debt burden force a reconsideration? Only time will tell, but one thing is certain: this clash in the House of Representatives will not be easily forgotten.