The Senate on Wednesday approved the federal government’s request to borrow 16.2bn, €1bn loans, and a grant of $125m.
The loan request was made under the country’s 2018-2020 External Borrowing (Rolling) plan.
The approval came after the Senate considered the report of its Committee on Local and Foreign Debt.
The request for the loans was sent by President Muhammadu Buhari to the Senate on September 15, 2021, for approval for $4,054,476,863, €710,000,000 and $125,000,000 loans.
According to the request letter, the loans are to come from China Development Bank, Africa Development Bank (AfDB), French Development Bank (AFD), European Investment Bank, Standard Chartered Bank, International Capital Market, World Bank, China EXIM Bank, and Industrial & Commercial Bank of China
The loans were to finance critical infrastructural projects across the country, the president had indicated.
According to the chairman of the committee, Senator Clifford Ordia, the committee discovered that out of a sum of over $22.8billion earlier approved borrowing 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 therefore notes that the great pressure placed on the human and financial resources of the National Assembly to approved loans under the Medium Term External Borrowing Plans is unnecessary.
“The Committee observed 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 chairman said.
According to him, the committee asked the Senate to approve the “ongoing negotiation of external borrowing in the sum of $16,230,077,718; €1,020,000,000 and a Grant component of $125,000,000 under the 2018-2020 External Borrowing (Rolling) plan.”
