The senate has approved $16,230,077,718 and €1,020,000,000
loans requested by President Muhammadu Buhari.
The upper legislative chamber also approved grant components
of $125 million.
The president had requested the facilities in an addendum to
the 2018-2020 borrowing plan in September.
In July, the national assembly approved the sums of $8.3
billion and €490 million loans as initial requests in the 2018-2020 borrowing
plan.
While presenting a report on Wednesday, Clifford Ordia,
chairman of the senate committee on local and foreign debts, said the projects
which funds are requested for in the 2018-2020 borrowing plan are ongoing.
Ordia said projects will stimulate a “rebirth of commercial
and engineering activities and the consequent tax revenues payable to
Government as a result of these productive activities will increase.”
“It will be recalled that the senate at plenary in July 2021
approved financing for projects as recommended by the Committee above whilst
the Committee continued further legislative action and consideration of the
outstanding request,” the senator said.
“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 external borrowed funds have been spent in the past, including loans
and grants.
“The committee found as a fact that out of a sum of over
$22.8billion approved by the national assembly under the 2016-2018 external
borrowing rolling plan, only $2.8billion, that is 10% has been disbursed to
Nigeria.
“The committee observes that these projects, some of which
require additional financing, will have a great multiplier effect on
stimulating economic growth through infrastructure development, job creation,
poverty alleviation, health care and improve our security architecture.”
The World Bank, African Development Bank and the French
Development Agency (AFD) are among the funding agencies.
Buhari had said the loans would stimulate the economy and
create jobs.
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