The House of Representatives is deliberating a bill to amend the 1999 Constitution, aimed at creating a dedicated account for all borrowed funds, credits, and grants received by the Federal Government.
According to The PUNCH, the bill, currently under review by the Committee on Constitution Review, was sponsored by Mansur Soro, representing Darazo/Ganjuwa Federal Constituency, Bauchi State.
Speaking about the proposal, Soro explained that the initiative seeks to enhance transparency and accountability in loan utilization by separating borrowed funds from Internally Generated Revenue.
“Combining borrowed funds and IGR in one account makes it difficult to track the utilization of loans, raising significant accountability concerns,” Soro stated.
“We need to ensure the public can scrutinize how borrowed funds are utilized. This bill proposes periodic reports to be published, detailing the use of these funds.”
Soro further emphasized the urgency of the legislation, noting the country’s mounting debt profile, now exceeding N134 trillion.
“As our borrowing increases, there is a critical need for transparency. Without clear tracking mechanisms, questions about loan management remain unanswered,” he added.
In a related development, another bill co-sponsored by Isiaka Ibrahim, representing Ifo/Ewekoro Federal Constituency in Ogun State, proposes strengthening the National Sovereign Investment Authority and abolishing the Excess Crude Account.
Soro elaborated, “This bill seeks to amend the Constitution to empower the NSIA to invest all excess revenue from hydrocarbon sales. It would also abolish the ECA and ensure that excess revenue is better managed on behalf of the federation.”
Criticizing the Federal Government’s current approach to the ECA, he said, “The existing system allows the Federal Government to unilaterally use funds meant for all tiers of government. Such practices, like using these funds for arms procurement, should be discouraged. Posterity will judge us harshly if we fail to adequately save for the future.”
Soro also urged the Federal Government to exercise caution with loans. “Borrowing should only happen when absolutely necessary. We are on the brink of a financial crisis, and it’s time to step on the brakes,” he warned.
