Senate Approves Buhari’s $16.2bn, €1.0bn Loan Requests

By Modupe Gbadeyanka

The two foreign loan requests of President Muhammadu Buhari have been approved by the Senate.

Mr Buhari had in September 2021 asked the upper legislative chamber of the National Assembly to allow him to borrow $16.2 billion and €1.0 billion from international sources, including the World Bank.

He had said the loans would be used by the federal government to stimulate the economy and create jobs for Nigerians.

At the plenary on Wednesday, the red arm of the parliament said the President can go ahead with his plans to borrow the $16,230,077,718 and €1,020,000,000.

Addressing his colleagues today after submitting his report, Chairman of the Senate Committee on Local and Foreign Debts, Mr Clifford Ordia, said the funds would be used on critical projects that will propel economic growth.

According to him, these projects will result in a rebirth of commercial and engineering activities and the consequent tax revenues payable to the government as a result of these productive activities will increase.

He further said the projects will have a “great multiplier effect on stimulating economic growth through infrastructure development, job creation, poverty alleviation, health care and improve our security architecture.”

“Subsequently, on the 15th of September 2021, the President of the Senate of the federal republic of Nigeria read another Communication from the President and Commander in Chief of the Armed Forces, Containing an addendum to the 2018-2020 External Borrowing (Rolling) Plan in the sum of $4,054,476,863, €710,000,000 and Grant Component of $125,000,000 for various projects and same was also referred to the committee for further legislative action.

“The committee notes that a good number of the projects in respect of which financing is being requested under the 2018-2020 external borrowing (rolling) plan are mostly ongoing projects and programmes in respect of which externally borrowed funds have been spent in the past, including loans and grants,” the lawmaker stated.