Umeh Questions Tinubu’s Fresh Loan Request, Demands Account of Previous Borrowings
Senator representing Anambra Central, Victor Umeh, has questioned the Federal Government’s request for fresh external loans, demanding an explanation of how previous borrowings have been spent.
Umeh said Nigerians deserved to know how funds obtained through earlier loan approvals had been utilised, particularly as the government continued to struggle with budget implementation and outstanding payments to contractors.
The lawmaker spoke on Channels Television’s Politics Today on Tuesday while reacting to President Bola Tinubu’s request to the National Assembly for approval to borrow an additional $20.5 billion and €1.045 billion under the 2026–2027 Supplementary External Borrowing Plan.
According to Umeh, previous borrowing requests were justified on the grounds that the funds would help finance government budgets, yet some budgetary obligations remained unmet.
He said, “Three budgets are running concurrently and the government is not meeting its obligations to contractors on capital projects and so on and so forth. So if you borrow to finance a budget and you are not able to finance that budget, where has the money gone to? That is the question in the lips of everybody.”
The senator also questioned the justification for further borrowing, noting that the government had reportedly exceeded its revenue targets.
He argued that the rising cost of living and the continued pressure on Nigerians’ purchasing power raised concerns about the impact of previous loans on the economy.
Umeh further criticised the pace of capital budget implementation, saying the government needed to demonstrate tangible results from its borrowing before seeking additional funds.
He cited the proposed reconstruction of the Eastern Rail Line, for which a $3 billion loan allocation had previously been approved, claiming that work was yet to begin on the project.
The lawmaker called on the Federal Government to explain whether the previously approved funds had been accessed and how they had been spent.
President Tinubu’s latest borrowing request is intended to finance projects in sectors including infrastructure, agriculture, healthcare, education, security and water supply.
The proposal has renewed debate over Nigeria’s rising debt profile, the management of borrowed funds and the extent to which government borrowing has translated into improved living conditions for citizens.
