Reps raise alarm over trillion naira local debts, call for probe

The House of Representatives on Tuesday called for investigation into the actual amount being owed local contractors by the Federal government before payment.

To this end, the House mandated its committee on aids, loans and debt management to liaise with the budget office of the federation, federal ministry of finance and other relevant government agencies to carry out a verification of local debts to ascertain the actual amount owed by the federal government and report back to the House within four months for further legislative action.

The resolution followed a motion moved by House Committee chairman on Rules and Business, Honourable Orker-Jev Emmanuel, entitled, “urgent need to carry out verification of local debts owed by the Federal government before payment.”

According to him, “there is so much uncertainty surrounding the amount of local debts owed by the federal government to local contractors, exporters, oil marketers amongst others while some put the figure at about N 2.2 trillion, others put it at over N10.61 trillion.”

The lawmaker noted that there was need to verify the actual amount, saying that, “with the clamour for a reflation of the economy, the Federal Government would soon start settling those local debts when the budget is passed.”

He further stated that, ” considering the shenanigans of Nigeria’s bureaucracy, the estimated amount allegedly being owed local contractors may not be real as the actual debt may have been over estimated and it will amount to a major disservice to the nation for trillions of naira to be paid without verification.”

He however said that, “if the verification exercise is carried out before the payments are made, trillions of naira will be saved for the national treasury which will be deployed for infrastructural development.”

The motion scaled through when it was put to vote by the Speaker, Hon Yakubu Dogara.