President Muhammadu Buhari’s request to borrow $4.054billion, €710million, and $125million external loans has been referred to the Nigerian Senate Committee on Foreign and Local Debts.
President of the Senate, Ahmad Lawan who referred the request on Tuesday asked the committee, led by Senator Clifford Ordia, to work on Buhari’s request and submit its report next Tuesday.
A motion to that effect was raised by Senate Leader, Yahaya Abdullahi, and seconded by the Minority Leader, Enyinnaya Abaribe.
President Muhammadu Buhari has written the Senate, seeking for the approval of fresh borrowing to the tune of $4,054,476,863 and €710 million in an addendum to the 2018-2020 borrowing plan.
The letter was read during plenary on Tuesday 14th of September by the President of the Senate, Senator Ahmad Lawan, as Buhari asked the National Assembly to approve grant components of $125million.
The letter reads in part, “I write in respect of the above subject and to submit the attached addendum to the proposed 2018-2021 Federal Government External Borrowing (Rolling) Plan for the consideration and concurrent approval of the Senate for same to become effective.
“The Senate President may wish to recall that I earlier transmitted a request on the proposed 2018-2020 Federal Government External Borrowing Plan for the concurrent approval of the Senate in May, 2021.
“However, in view of other emerging needs and to ensure that all critical projects approved by the Federal Executive Council, as of June 2021 are incorporated, I hereby forward and addendum to the proposed Borrowing Plan.
“The Projects listed in the addendum to the 2018-2021 Federal Government External Borrowing Plan are to be financed through sovereign loans from the World Bank, French Development Agency, China-Exim Bank, International Fund for Agricultural Development, Credit Suisse Group and Standard Chatered/China Export and Credit in the total sum of $4,054,476,863.00; €710,000,000.00 and grant component of $125,000,000.00.
“The Senate is kindly invited to note that the projects and programmes in the Borrowing Plan were selected based on positive, technical and economic evaluations and the contribution they would make to the socio-economic development of the country including employment generation and poverty reduction as well as protection of the most vulnerable and very poor segments of the Nigerian society.
“The Senate may also wish to note that all the listed projects in the addendum form part of the 2018-2021 External Borrowing Plan and cover both the Federal and States Government projects and are geared towards the realization of the Nigeria Economic Sustainability Plan that cut across key sectors such as Infrastructure, Health, Agriculture and Food Security, Energy, Education and Human Capital Development and COVID-19 Response efforts.
“Given the importance attached to the timely delivery of the projects listed in the proposed Borrowing Plan and the benefits both the federal and state governments stand to gain from the implementation of same, I hereby wish to request for the kind consideration and concurrent approval of the Senate for projects listed in the addendum to the 2018-2021 Federal Government External Borrowing Plan to enable the projects become effective,” the letter stated.