Nigeria House: DMO, TCN Debt Investigation Targets N54.57 Trillion

• The House of Representatives Public Accounts Committee will question the Debt Management Office and Transmission Company of Nigeria over issues from the 2024 Auditor-General's report.
• The DMO is accused of exceeding approved borrowing limits by N54.57 trillion between 2020 and 2024, contracting N88.67 trillion in loans against N34.89 trillion budgeted.
• TCN must account for its alleged failure to recover N446.70 billion out of N882.75 billion owed to the Federal Government by public entities.
• These hearings aim to enforce financial accountability and ensure compliance with regulations across federal agencies.
• The National Assembly's power to investigate public expenditure is enshrined in Sections 88 and 89 of the 1999 Constitution.

The legal foundation for these investigations is firmly established in Sections 88 and 89 of the 1999 Constitution of the Federal Republic of Nigeria, as amended.

The Nigerian House of Representatives Public Accounts Committee (HoR PAC) is set to initiate a significant investigation into the financial activities of two key federal agencies: the Debt Management Office (DMO) and the Transmission Company of Nigeria (TCN). These hearings, scheduled for Monday and Tuesday following an invitation issued on September 29, 2026, stem directly from critical observations detailed in the 2024 Auditor-General for the Federation’s report. The committee's objective is to reinforce financial accountability across federal Ministries, Departments, and Agencies (MDAs) and ensure strict adherence to established financial regulations governing public funds.

Chaired by Bamidele Salam, who represents the Ede North/Ede South/Ejigbo/Egbedore Federal Constituency of Osun State, the committee will delve into reported irregularities concerning government borrowing practices and the recovery of substantial debts owed to the Federal Government. Both the DMO and TCN have been instructed to submit all relevant documentation to the committee's secretariat in Hearing Room 4, White House, House of Representatives, at least 72 hours before their scheduled appearances. Furthermore, the accounting officers and pertinent subject matter experts from both organizations are mandated to attend the 1 pm hearings in Hearing Room 446. This Nigeria House DMO TCN debt investigation underscores a growing emphasis on fiscal discipline.

The Debt Management Office faces questioning regarding its alleged non-compliance with the borrowing estimates outlined in five distinct Appropriation Acts, spanning the fiscal years from 2020 to 2024. According to the 2024 Auditor-General for the Federation’s Annual Report on Non-compliance and Internal Control Weaknesses in MDAs, the DMO is accused of exceeding its approved borrowing limits by a staggering N54.57 trillion over this five-year period. This significant discrepancy forms a central part of the inquiry.

Specifically, the report indicates that the DMO contracted new domestic and foreign loans totaling N88.67 trillion. This figure stands in stark contrast to the N34.89 trillion allocated for debt financing within the Federal Government’s approved budgets for the same timeframe. The substantial difference between the actual borrowing and the budgeted amount raises serious concerns about the adherence to legislative approvals and the established procedures governing government borrowing. The committee intends to solicit comprehensive explanations from the agency regarding these reported discrepancies and the measures implemented to ensure future borrowing activities align with approved fiscal plans and the Debt Management Office borrowing limits.

The Transmission Company of Nigeria (TCN) is also slated to provide explanations concerning its alleged failure to recover a substantial sum of N446.70 billion. This amount represents a portion of N882.75 billion owed to the Federal Government by various public agencies and institutions. The outstanding obligations, as highlighted in the Auditor-General's report, point to significant challenges in the Transmission Company of Nigeria debt recovery efforts.

The HoR PAC will seek detailed clarification from TCN on the steps taken to recover these funds and the underlying reasons for the persistent unpaid balance. This aspect of the inquiry highlights broader issues related to the efficient management of public resources and the diligent recovery of government funds that are currently tied up in outstanding debts.

These impending hearings are set against a backdrop of increasing concerns regarding the overall management of public resources and strict compliance with financial regulations across Nigeria's public sector. Committee Chairman Bamidele Salam has consistently warned public institutions against treating legislative summons with indifference, emphasizing the National Assembly's robust constitutional mandate to investigate matters pertaining to public expenditure and the administration of government funds.

The legal foundation for these investigations is firmly established in Sections 88 and 89 of the 1999 Constitution of the Federal Republic of Nigeria, as amended. These sections explicitly empower the National Assembly and its committees to conduct inquiries into the conduct of affairs of any person, authority, ministry, or government department charged with the responsibility of administering laws enacted by the National Assembly, or disbursing or administering money appropriated or to be appropriated by the National Assembly. This framework underscores the critical role of legislative oversight in upholding Nigerian government financial accountability.

Lawyers advising Nigerian Ministries, Departments, and Agencies (MDAs) or entities involved in public finance must note the heightened legislative scrutiny on borrowing limits and debt recovery. This development signals increased enforcement of financial accountability, requiring rigorous compliance with Appropriation Acts and financial regulations to avoid legislative summons and potential legal ramifications under Sections 88 and 89 of the 1999 Constitution.

Source: Original reporting via The PUNCH