Senator Victor Umeh, representing Anambra Central Senatorial District, has questioned the Federal Government’s management of previously approved loans, demanding an explanation for the continued non-payment of contractors and the underfunding of capital projects as President Bola Tinubu seeks approval to borrow an additional $20.5 billion and €1.45 billion.
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Umeh raised the concerns on Tuesday during an appearance on Channels Television’s Politics Today, where he questioned why the government continued to seek fresh borrowing approvals despite outstanding financial obligations under previous budgets.
The senator argued that the National Assembly had approved substantial borrowing requests in the past, with assurances that the funds would be used to finance government budgets and support development projects.
However, he expressed concern that several projects remained inadequately funded, while contractors executing capital projects were still awaiting payment.
“The truth is that we have approved so much funds to be borrowed in the past, and on each occasion we’ve been told that this borrowing would be able to fund the budgets and these budgets have remained unfunded up till this day,” Umeh said.
He questioned the effectiveness of the government’s budget implementation process, particularly at a time when multiple budgets were being executed concurrently.
According to him, the existence of three concurrent budgets, coupled with outstanding payments to contractors, raises questions about the utilisation of funds previously borrowed to support government expenditure.
“Three budgets are running concurrently and the government is not meeting its obligations to contractors on capital projects and so on and so forth,” he said.
Umeh maintained that Nigerians deserved a clear explanation of how previously approved loans had been utilised, especially when the projects and financial commitments for which the funds were sought remained uncompleted or unpaid.
“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,” he added.
The senator’s remarks followed President Tinubu’s request for the National Assembly to approve the Federal Government’s 2026–2027 supplementary external borrowing plan, comprising $20.5 billion and €1.45 billion.
According to the Federal Government, the proposed loans are intended to finance critical infrastructure, agriculture, education and other priority sectors under its development agenda.
However, Umeh questioned the justification for additional borrowing without first addressing concerns surrounding the implementation of previous budgets and the payment of outstanding obligations.
He argued that repeated borrowing approvals should ordinarily translate into improved budget performance and the timely execution of capital projects.
The lawmaker also expressed concern about the National Assembly’s ability to scrutinise and potentially reject the latest borrowing request.
He predicted that the proposal would eventually secure legislative approval, suggesting that opposition lawmakers might be unable to prevent its passage because members of the ruling party could outvote them.
His comments highlighted concerns about the balance of political forces in the National Assembly and the extent to which lawmakers could independently assess the government’s borrowing proposals.
The fresh loan request has renewed debate over Nigeria’s growing public debt burden, the transparency of government borrowing and the effectiveness of mechanisms for monitoring the utilisation of borrowed funds.
Umeh maintained that the government must account for previously approved loans and explain why contractors remain unpaid despite repeated assurances that borrowing would support budget implementation.
His criticism adds to calls for greater accountability in public financial management, particularly regarding the relationship between external borrowing, capital expenditure and the execution of government projects.
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