Opposition Representatives Walk Out Over Proposed Increase in Government Borrowing Limit

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A heated session erupted in the Nigerian House of Representatives on Wednesday as a contentious bill proposing an increase in the government's borrowing limit, known as "ways and means," led to a dramatic walkout by opposition representatives. The bill seeks to raise the borrowing cap from 5% to 10% of the previous year's revenue, a move that has sparked significant debate among lawmakers.


The "ways and means" provision is a financial mechanism through which the Central Bank of Nigeria (CBN) lends money to the federal government to cover budget shortfalls. Current CBN regulations stipulate that such advances must not exceed 5% of the previous year's revenue. However, this limit has often been exceeded in practice, raising concerns about fiscal discipline and transparency.


The drama unfolded when Kingsley Chinda, a member of the opposition, suggested an amendment to limit the borrowing increase to 2% instead of the proposed 10%. Chinda argued that a lower cap would promote greater transparency in government expenditures. Despite his arguments, the majority opposed his recommendation.


James Faleke, the chairman of the finance committee, strongly opposed Chinda's amendment. He advocated maintaining at least the 5% limit, expressing concerns that lowering it could hinder the government's ability to manage budget deficits. Ibrahim Isiaka, another lawmaker from Ogun State, supported Faleke's stance and further proposed raising the borrowing limit to 10% of the previous year's revenue.


Former Deputy Speaker Idris Wase moved a motion to solidify the 10% borrowing limit. When Deputy Speaker Benjamin Kalu called for a voice vote, the dissent from opposition members was palpable as they loudly expressed their disapproval. Despite the louder "nays," Kalu ruled in favor of the "ayes," prompting a walkout by opposition members led by Chinda.


Despite the opposition's protest, the report was adopted and passed for a third reading. The debate on ways and means had been ongoing since December 28, 2022, when then-President Muhammadu Buhari requested the National Assembly to approve N22.7 trillion in ways and means advances from 2023, Buhari highlighted the financial urgency of the matter, stating that failure to approve the N22.7 trillion in extra-budgetary spending would cost the government approximately N1.8 trillion in interest. The Senate eventually approved Buhari's request on May 23, 2023.


The bill's discussion also brought to light past controversies involving the CBN. In December of the previous year, former CBN Governor Godwin Emefiele was implicated in a fraud case related to the bank's loan activities. A special investigative panel led by Jim Obazee revealed that Emefiele and former Finance Minister Zainab Ahmed had advised Buhari to restructure N23.71 trillion in ways and means, while presenting a different figure to the National Assembly.


The opposition's walkout underscores the deep divisions and ongoing debates regarding Nigeria's fiscal policy and the management of its budget deficits. The decision to raise the borrowing limit will have significant implications for the country's financial stability and governance.

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