Senate approves President Buhari’s $ 6.1 billion external loan request to fund key projects – Businessamlive


The Nigerian Senate has approved a request for an external loan of $ 6.1 billion, approximately 2.34 trillion naira, by President Muhammadu Buhari for the financing of projects in priority sectors of the economy, sectors include transport , electricity, agriculture and rural development, health, education, the provision of counterpart funds for multilateral and bilateral projects, defense and water resources. The approval comes after consideration of the report presented by Senator Clifford Ordia, Chairman of the Senate Committee on Local and Foreign Debt in plenary.

It can be recalled that President Buhari had, in May 2021, asked the National Assembly to examine the loan request and subsequently to approve the loan which, he said, will come from multilateral and bilateral lenders as well as of the international capital market.

Meanwhile, Senator Ordia, in his presentation, further revealed that the National Assembly had already approved the borrowing of 4.6 trillion naira in the 2021 budget law and that the new borrowing of 2.3 trillion naira will partially finance the 2021 budget deficit. However, Nigeria’s 2021 budget already has a deficit of 5.6 trillion naira that the government is currently seeking to find ways to generate revenue to finance the deficit.

He also said the request was not new as it had already been approved in the borrowing plan when the National Assembly passed the 2021 appropriation bill.

“What we are about to spend is not a new borrowing, it was approved in the 2021 budget,” Ordia said.

Ahmad Lawan, the speaker of the Senate, said on Wednesday after the approval that the National Assembly must ensure that there are no frivolous expenses by executives following the approval of this loan request. .

“Let me thank the committee, this is not a new loan. This is a borrowing plan that we have approved. What we have done is provide the resolutions necessary for its implementation. Every penny counts. Our committees must be alive to watch it. No frivolous expense should be considered, ”Ahmad said.


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