No justification for fresh borrowing amid revenue gains — Umeh
Senator Questions Justification for New Loans Amid Rising Costs
Senator Victor Umeh has expressed skepticism regarding the Federal Government’s recent request for additional loans, arguing that continued borrowing is unwarranted, especially given the government’s claims of exceeding revenue targets.
Umeh, who represents Anambra Central, made his remarks during an appearance on Channels Television, where he responded to President Muhammadu Buhari’s call for approval of further external borrowing. He emphasized the need for the government to provide accountability for previous loans and their effects on the lives of Nigerians.
“Given that you’ve surpassed your revenue expectations, there is no justification for constantly taking the country into borrowing,” he stated.
He noted that past loans were typically promoted as investments in infrastructure development; however, many citizens have yet to see tangible benefits. “Many of the loans have been tied to infrastructure projects, but when we inquire about the allocation of these funds, the response often hinges on emergency funding needs,” Umeh said.
The senator highlighted the pressing issue of rising living costs, indicating that many citizens are struggling financially. He cited the current fuel prices as a significant concern, referencing his own experience of purchasing petrol for N1,410 per liter and diesel for approximately N1,889 per liter. “When will these prices decrease? When will citizens be able to purchase petrol or diesel without complaints?” Umeh asked.
Umeh also criticized the lack of progress on the 2026 capital budget, noting that as October nears its end, there has been no implementation. “We are at the end of October, and yet the capital budget remains unimplemented with just a month left in the year,” he remarked.
Additionally, he pointed out that despite a previously approved $3 billion loan aimed at reconstructing the Eastern Rail Line, no work has commenced on the project. “Part of that $21 billion was allocated for the Eastern Rail Line. There has been no progress,” he stated.
Umeh urged the government to clarify whether the borrowed funds had been utilized effectively before seeking further loans. When asked whether the opposition could block the loan request, he acknowledged that the governing majority has the numbers to secure approval. “While we are not mere rubber stamps, we lack the votes to reject it,” he concluded.
