The Senate on Wednesday approved fresh $16.23 billion and €1bn loans requested by President Muhammadu Buhari.
This was sequel to the presentation of the report of the Senate Committee on Local and Foreign Debts by the Chairman of the committee, Senator Clifford Ordia, during plenary.
The loan request was approved by National Assembly on a strict resolution that the terms and conditions of the loan from the funding agencies should be forwarded to the chamber before its execution for approval and proper documentation.
The Senate President, Ahmed Lawan’s spokesman, Ezrel Tabiowo, revealed this in a statement, stating that the approval followed the consideration of a report by the Committee on Local and Foreign Debt on the proposed 2018-2020 External Borrowing (Rolling) Plan.
The Senate also approved a grant component of $125 million and the request to the Bank of Industries for the issuance of €500 million.
According to the Chairman of the Committee on Local and Foreign Debt, Senator Clifford Ordia (PDP, Edo Central), Buhari’s request was in compliance with the provisions of the Debt Management Office (Establishment) Act 2003 and the Fiscal Responsibility Act 2007.
Presenting the report, Ordia noted that most of the projects which the funds are requested for in the 2018-2020 borrowing were currently being executed.
“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 external borrowed funds have been spent in the past, including loans and grants.
“The projects are geared towards stimulating a rebirth of commercial and engineering activities to boost tax revenue payable to the government.
“Only 10 per cent of the $22.8billion approved by the national assembly under the 2016-2018 external borrowing rolling plan was disbursed to Nigeria.
He explained that the projects will have a great multiplier effect in stimulating growth through infrastructure development, job creation, poverty alleviation, health care and improve our security architecture.
The loans will be funded by the World Bank, African Development Bank and the French Development Agency (AFD), Ordia said.
Odia explained that out of the total amount approved by the National Assembly, the sum of $3,529,300,000 billion would be sourced from the World Bank; $5,078,441,252 billion from China EximBank; $3,902,267,260 billion from Industrial & Commercial Bank of China; $2,893,693,930 billion from China Development Bank; and $698,500,000 billion from the Africa Development Bank (AfDB).
“€345,000,000 million is expected to be sourced from the French Development Agency (AFD); €175,000,000 million from the European Investment Bank; $190,255,276 million from European ECA/KfW/IPEX/AFC; €500,000,000 from the International Capital Market; and $62,120,000 from Standard Chartered Bank/SINOCURE,” he added.
