Some senior lawyers (SANs) have warned the National Assembly against becoming a rubber stamp to the executive arm of government in view of its expeditious approval and passing of the executive bills sent from the presidency to the NASS.
This was even as they said that questioning the approval process without evidence of procedural violations would be largely academic.
It would be recalled that President Bola Tinubu last Wednesday sent four bills which sought to change the nation’s tax systems to the National Assembly. The four Bills passed the second reading on the same day.
Before then, Aso Rock Villa had sought for the lawmakers to approve a further loan request of $2.2billion.
This was despite the fact that some of the nation’s revenue generating agencies reported that they had surpassed their targets for the year. Notable among them is the Nigeria Customs Service(NCS), which as at September had raked in N5.35trillion revenue, which is above N5.09trillion targeted for the entire 2024 fiscal year.
Also, the Nigeria National Petroleum Corporation Ltd, exceeded the N12.3 trillion revenue projected for 2024 by already raking in N13.1 trillion.
The Executive Chairman, Federal Inland Revenue Service, Zach Adedeji, told the Senate Committee on Finance that the Service, out of N19.4 trillion targeted for 2024 fiscal year, N18.5 trillion was realised as at the end of September, which clearly showed that the target will be far exceeded by the end of the year.
To Afolabi Latunde (SAN), as long as the legislative body adheres to its procedural rules, there was no issue with the pace of loan approvals.
He noted that questioning the approval process without evidence of procedural violations would be largely academic.
However, Olatunde underscored the need to ensure loans were allocated for productive purposes to guarantee repayment, cautioning against their use for consumption, which could harm the economy.
Abiodun Layonu, SAN, echoed these views, emphasizing the importance of evaluating the purpose and repayment capacity of loans.
He warned against turning the National Assembly into a “rubber-stamp institution” and advocated for rigorous scrutiny of each loan requests.
Layonu further noted that while borrowing might be necessary to revitalize the economy, indiscriminate approvals could have serious repercussions.
In a more critical stance, Chief Mike Ahamba, SAN, described Nigeria’s reliance on borrowing as a “shame.”
He criticized the government’s inability to adopt competitive and innovative economic solutions, leading to an over-reliance on loans often tied to conditions set by international financial institutions such as the World Bank and the International Monetary Fund (IMF).
Ahamba argued that for Nigeria to achieve sustainable development, the country must transcend its borrowing culture and embrace self-reliant economic strategies.
Also weighing in, a legal practitioner, Abiodun Olugbemide said: “Barely within the space of nine years, the national debt has skyrocketed to over 900% because as at 2015, the debt was at N12.6 trillion but now in 2024, it is N138 trillion
“One would expect the National Assembly to have a thorough scrutiny, checking before approving, and while I may be wrong, I do not believe that a situation that will affect the entire nation should be approved within 48hours.
“This can make anyone believe that the national assembly has neglected its constitutional role of rigorous oversight and should not reduce itself to a mere rubber stamp for the Executive.
“Unchecked borrowing without tangible economic return could deepen the Nigerian economic crisis.
“While borrowing in itself is not a bad idea, it should be to strengthen the economic capacity of a country, to repay debt, and further borrowing is discouraged.
“Borrowing should be used in building both human and infrastructure capacity.
“What also is the sustainability of the debt? What percentage is the interest of the loan?
“No matter how noble the loan is, if it’s going to destroy the economy in the long run, it’s of no use.
“According to experts, multilateral debts are the best because their interest rates are very low, compared to the others. They are the debts owed to multilateral organizations like ADB, WORLD BANK, and IMF, with interests not more than 1-2 per cent.
“Bilateral debts are also good as they come in cash, and are focused on specific projects, of which the country releasing the fund is a part. Citizens can see what the loan is used for. The dangerous loan is the Eurobond, with interest rates as high as 9 to 10 per cent.
“My take in all these, is that the National Assembly is expected to know what to look out for, before approving any loans for the Executive, as necessity should be on the national development, with the citizens being catered for, and not a party politics in which policies are formulated or encouraged, just to favour the few.
“$2.2bn loan request… approved!? In what ways would this loan be of great benefits to the common man that looks for his daily meal? In what ways…?”.
Another lawyer, Onesimus Ruya, condemned the speed at which the National Assembly approved a loan request by the Executive.
According to him, the Legislative has become a rubber stamp to the executive.
“This move has raised concerns about the lack of transparency and accountability in the loan approval process.
“In general, lenders consider several key factors when reviewing a loan application, including credit history, cash flow history and projections, collateral, and character.
“However, in this case, it appears that the NASS may have overlooked or disregarded these essential factors, leading to the speedy approval of the loan request.
“There is need for a more rigorous and transparent loan approval process to ensure that loans are granted based on merit and not on political or personal interests.”
On Friday, Governor Babagana Zulum of Borno State, voiced strong concerns over the proposed tax reform bill, warning that it could have devastating consequences for the Northern region and other parts of the country.
In an interview with BBC Hausa, Zulum criticised the speed with which the bill is progressing through the legislative process, drawing comparisons to the Petroleum Industry Bill, which took nearly two decades to pass.
Zulum stated:“Why the rush? The Petroleum Industry Bill took almost 20 years before it was finally passed. But this tax reform bill is being transmitted and receiving legislative attention within a week. It should be treated carefully and with caution, so that even after our exit, our children will reap its benefits,” Zulum stated.
The governor alleged that the bill is structured to disadvantage certain regions of the country.
“We condemn these bills sent to the National Assembly. They will drag the North backward and also affect the South East, South South, and some South-Western states like Oyo, Osun, Ekiti, and Ondo,” he added.
Zulum further alleged that some individuals might be influencing President Bola Ahmed Tinubu into believing that the North does not support his administration.
He said: “This is not opposition. Based on our understanding, this bill will destroy the North entirely. We call on President Tinubu to review this decision. He secured 60 per cent of his votes from the North. He should not listen to those telling him the North is not supporting him. What we need is the withdrawal of these tax bills.”
In Niger state, a Chieftain of the People’s Democratic Party (PDP), Usman Yahaya Mohammed, also known as ‘Sai Baba’s, said the National Assembly members were not very thorough in their job as senior prefect to the Executive arm of government.
He told one of our Correspondents that ordinarily, the Lawmakers should not be too quick or expeditious in approving loans.
He said: “I personally think the National Assembly members are not very thorough in their job of a senior prefect to the executive. Whether, the loan is needed or not is another angle but I think with our past experience on debts, the National Assembly should not be expeditious in approving loan but should be thorough, diligent and meticulous by screening every single item to avoid going back to our past.”
