The Nigerian Senate has launched a probe into the N30 trillion ways and means loan including interest rate to the federal government after a heated and extensive debate on Tuesday.
The Senate set up an ad-hoc committee to interrogate the details of the ways and means of disbursement usage, particularly the intervention programmes such as the anchor borrowers programmes, excess funding in the power sector, monies given to manufacturers, banks and airlines which increased the current debt profile of the country.
The Committee will interrogate the ‘quasi-fiscal measures’ totalling N10 trillion of which the Anchor Borrower programme to plug financial loopholes.
The Senate had in May 2023 approved the securitisation of the N22.7 trillion ways and means to the federal government as requested by former President Muhammadu Buhari.
The upper chamber noted that the interest rate accrued and approved by it has pushed the loan to N30 trillion naira
The decision to probe the funds was afterwards reached after the report of the National Assembly Joint Committees on Banking, Insurance and Other Financial Institutions (BIOFI), Finance, National Planning, Agriculture and Appropriation on the state of the economy.
During the debate on the report, lawmakers raised concerns that the 9th Assembly approved the loan without inquiring about the purpose, but the issue of whether or not to probe the loan stirred a heated debate.
Ali Ndume, Senator representing Borno south Senatorial District described the approval of the ‘Ways and Menas Loan by the National Assembly, particularly the Senate as illegal, his comment generated further debate.
Though he was in the 9th Senate, however, said he was not part of the approval, but Senate President Godswill Akpabio tackled his comment on not being part of the approval.
Deputy Senate President Jubrin Barau who was the Chairman, of the appropriation committee in the 9th Senate explained that the loan was approved with a caveat that details should be provided, but said details were not provided.
He argued that ways and means can be approved in terms of emergency, stressing that the Legislature ought to collaborate with the executive, especially in times of emergency.
“Ways and means supposed to be a temporary overdraft, it could be due to an emergency, it is expected that if the executive and legislature are on the same page, it can assist the federal government in the case of emergency. It was a collective action by the Senate” noting that President Bola Tinubu could require such collaboration from the 10th Senate.
But Akpabio interrupted the deputy Senate President and declared that the 10th Senate would not be a rubber stamp.
Akpabio told Barau that the action has put Nigeria into a serious mess, as the government is struggling to pay the debt.
“The expenses that we do not have details of have put us iindebtedaandhave affected the government’s ability to meet its obligations”, he said.
In his argument, Ahmed Lawan the former Senate president, and now Senator representing Yobe North senatorial district explained that the approval was to address “very serious infrastructure dilapidation”.
He, however, urged the Lawmakers to forget about past incidents and approvals and focus on the pressing issue which according to him is food insecurity.
“Let me say this clearly what Nigerians want today is food. How can we provide food for Nigerians and security? Let us not put the cart before the horse. We are in the present and it’s so unpleasant”, he said.
The Senate President, however, noted that government is a continuum, hence the Senate has the right to know the details of the loan.
The Senate President then put the recommendation for an ad hoc committee to probe the funds to a voice vote and a majority of lawmakers voted in favour.
