Nigeria’s House of Representatives is deliberating a bill that seeks to amend the 1999 Constitution to create a special account dedicated to receiving all borrowed funds, credits, and grants to the Federal Government.
The proposed legislation, sponsored by Mansur Soro, who represents the Darazo/Ganjuwa Federal Constituency in Bauchi State, is currently before the Committee on Constitution Review.
Driving Transparency in Public Finance
Explaining the bill’s rationale, Soro said that its primary aim is to enhance fiscal transparency and accountability by ensuring that borrowed funds are housed separately from Internally Generated Revenue (IGR).
“Having both the IGR and borrowed funds in a single account makes tracking of the funds difficult and less transparent,” Soro said. “We need to be more accountable to the people. If we cannot effectively track the movement and use of loans, many questions are begging for answers.”
The bill mandates periodic publication of reports detailing the utilisation of borrowed funds. Soro highlighted the urgency of such measures, given Nigeria’s mounting debt profile, which now exceeds ₦134tn.
Reforming Excess Revenue Management
In addition to the special account proposal, Soro, alongside co-sponsor Isiaka Ibrahim, representing the Ifo/Ewekoro Federal Constituency in Ogun State, is advocating constitutional amendments to reform how excess revenue from hydrocarbon sales is managed.
Their bill seeks to abolish the controversial Excess Crude Account (ECA) and redirect excess oil revenue to the National Sovereign Investment Authority (NSIA). Under this framework, the NSIA would oversee investments on behalf of the federation, treating both the Federal Government and sub-nationals as stakeholders.
“The current system, which sees the Federal Government save money in the ECA only to use it for unplanned expenditures, like procuring arms, should be discouraged,” Soro stated. He added, “If we fail to adequately save for the rainy day, posterity will not be kind to us.”
The Bauchi lawmaker stressed that Nigeria’s financial management must prioritise long-term economic stability through prudent investments rather than short-term consumption.
Caution Against Reckless Borrowing
Soro also used the opportunity to warn against Nigeria’s rising dependency on borrowing. He urged the Bola Tinubu administration to limit loans to situations of absolute necessity and take bold steps to block revenue leakages and curb corruption in public expenditure.
“We are already running into a financial crisis, and this is the time to apply the brakes,” he said.
The proposed constitutional amendments, if passed, could significantly reshape Nigeria’s fiscal landscape, creating stricter checks on government borrowing and ensuring greater accountability in managing the nation’s resources.
