The House of Representatives is actively deliberating a new bill aimed at amending the 1999 Constitution to establish a special account designated for all borrowed funds, credits, and grants to the Federal Government.
This significant legislative proposal is currently under review by the Committee on Constitution Review and is spearheaded by Mansur Soro, the representative for Darazo/Ganjuwa Federal Constituency in Bauchi State.
Soro emphasized that the bill is designed to enhance transparency in the handling of borrowed funds by creating a dedicated account, ensuring full disclosure of how these funds are utilized. He pointed out that merging borrowed funds, grants, and Internally Generated Revenue in a single account complicates the monitoring process.
“Combining IGR and borrowed funds in one account obscures accountability and transparency. We must ensure we can track the movement and usage of loans effectively,” Soro stated. He further explained that the bill aims to distinctly separate these financial sources while mandating the publication of periodic reports concerning their usage.
The urgency for this bill is underscored by the current national debt, which exceeds N134 trillion, amidst increasing Federal Government borrowing activities.
In a related effort, legislation co-sponsored by Isiaka Ibrahim, representing the Ifo/Ewekoro Federal Constituency in Ogun State, seeks to empower the National Sovereign Investment Authority (NSIA) to manage all excess revenue derived from hydrocarbon sales. This proposal advocates for the abolition of the Excess Crude Account, calling for a more effective system to manage these funds.
Soro further cautioned against reckless borrowing practices, advocating for fiscal responsibility. “We should only incur debt when absolutely necessary, as the nation faces a financial crisis that requires immediate attention,” he asserted. He urged the government to focus on closing revenue leakages and combating corruption in public spending to mitigate reliance on borrowing.
