Senator Victor Umeh has questioned the Federal Government’s spending of previous loans, asking why contractors remain unpaid despite repeated borrowing approvals.
The Anambra Central lawmaker raised the concerns on Channels Television’s Politics Today on Tuesday. He was reacting to President Bola Tinubu’s request for legislative approval to secure an additional $20.5 billion and €1.45 billion in external loans.
Umeh argued that previous borrowing requests came with assurances that the funds would finance government budgets. However, he said outstanding payments to contractors raised questions about how the borrowed money had been used.
“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,” Umeh said.
He added that the budgets had remained unfunded despite those assurances.
Umeh Questions Government Spending on Previous Loans
The senator expressed concern that three budgets were running concurrently while contractors handling capital projects were still waiting for payments.
He questioned why the government continued to seek fresh loans without first addressing outstanding financial obligations.
“Three budgets are running concurrently and the government is not meeting its obligations to contractors on capital projects,” he said.
Umeh asked the government to explain what happened to funds borrowed to finance earlier budgets.
His comments have added to the debate over public spending, government borrowing and the management of Nigeria’s growing debt obligations.
Tinubu Seeks Approval for Fresh External Loans
President Tinubu has written to the National Assembly seeking approval for the Federal Government’s 2026–2027 supplementary external borrowing plan.
The request covers $20.5 billion and €1.45 billion in proposed borrowing.
According to the government, the funds would support critical infrastructure, agriculture, education and other priority sectors under the administration’s development plans.
The proposal requires legislative approval before the government can proceed with the borrowing arrangements.
The fresh request has drawn attention to how the government intends to use the funds and meet its existing financial commitments.
Senator Predicts Approval Despite Opposition Concerns
Umeh also suggested that the National Assembly would eventually approve the borrowing request.
He argued that opposition lawmakers would struggle to stop it because members of the ruling party could outvote them.
His comments came as lawmakers faced questions about the proposed loans and the government’s record of meeting budgetary commitments.
The debate centres on whether additional external borrowing will deliver the promised development projects while the government addresses existing obligations to contractors.
The government has identified infrastructure, agriculture and education as key areas for the proposed funds. Umeh, however, wants clearer answers about previous loans and why some capital project payments remain outstanding.
The National Assembly’s consideration of the request will determine the next step in the proposed borrowing plan.