By Uche Amunike
Even though the constant borrowing by the present administration of President Buhari has not gone down well with the economic situation of the country, his government has asked the Senate to approve of $4 billion and €710 million fresh external loans.
This was stated in a letter addressed to the Senate President, Ahmad Lawan and read on the floor of the Upper Legislative Chamber.
In the letter, he explained that the loan will be financed with the help of sovereign loans from the World Bank, French Development Agency, IFAD and EXIM.
He said in the letter that the loan would help the Federal government to fund critical infrastructural projects in various sectors across the country.
His letter partly reads, ‘I write on the above subject and submit the attached addendum to the proposed 2018-2020 external rolling borrowing plan for the consideration and concurrent approval of the Senate for the same to become effective. The distinguished Senate President may recall that we submitted a request on 2018-2020 borrowing plan for the approval of the Senate in May 2021.’
He went on to say that he was forced to forward an addendum to the proposed borrowing plan because of the other needs that came up and also to ensure that all the critical projects approved by the Federal Executive Council, FEC, beginning from June 2021 are incorporated.
He concluded the letter by saying that there was a need to finance the projects listed in the external borrowing plan through sovereign loans from the World Bank, French Development Agency, Exim Bank and IFAD in the sum total of $4,054,476,863 and €710 million including Grant components of $125 million.
Recall that recently, Nigeria’s Finance, Budget and National Planning Minister, Zainab Ahmed, revealed that the Federal government only borrowed to invest in infrastructure in the country and described the federal government’s borrowing as sensible and responsible.
She claimed during an interview with newsmen in Abuja that the only problem in Nigeria was that of revenue and that the numerous funds borrowed by the Federal government was sensibly down because of the need for the government to make infrastructural investments like power, water, roads and rails, etc which are what the country requires to enhance business productivity in this country presently, claiming that apart from the businesses growing and paying taxes, they will also offer job opportunities to people.
She pointedly said that the country will face the risk of facing regression from where it stands if borrowing is ruled out because it is a necessary investment and the Federal government was doing it sensibly.
Recall also that in July, the red chamber approved the sum of N982,729 billion as the supplementary budget for the 2021 fiscal year and the Special Assistant(Press), to the Senate President, Ezrel Tabiowo said the approval of the money represented an upward review of N86.9 billion from the initial amount of N895,842 billion transmitted to the National Assembly by President Buhari.
