$28.2B Loan: N’assembly Approves Buhari’s Govt Request

The national assembly on Tuesday gave President Muhammadu Buhari the nod to borrow $28.2 billion.

The two legislative chamber gave approval for different loan requests sought by the president during plenary session on Tuesday.

The senate on the one hand acceded to the president’s request to borrow $5.5 billion for COVID-19 and priority projects, the house of representatives on the other hand also consented to a $22.7 billion which was rejected last year.

The lower chamber approved the $22.7 billion following consideration of the report of its committee on aids, loans and debt management.

Buhari had, in 2019 when he sent the loan request, said the loan would be used to fund key infrastructures in the country in order to address infrastructural deficit bedeviling the country.

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However, the request met a stumbling block by way of stiff opposition form some lawmakers, especially those from the south-east, they averred that the region was sidelined in the loan’s implementation plan.

The criticisms had led to suspension of the loan approval which has now been debated and passed after much plea from Femi Gbajabiamila, the speaker.

Gbajabiamila said every step to address the issues raised against the loan request was consumed by legal pitfalls “in the sense that agreements have already been made and cannot be approved”.

“So, it is either we approve wholesale or not approve,” he said.

The speaker, however, added that the house was able to bring the executive to agree to add projects from the south-east and north-east into the next borrowing plan.

“For the first time, we added a clause specifying certain projects. We met and demanded for the commitment of the executive that these projects must be considered in the next borrowing plan and we got their words,” he said.

“I am only seeking for the understanding of our colleagues from the north-east and south-east. All of us will agree that there is a massive wide infrastructural deficit in this country and we need to bridge that gap.

Buhari first sent the loan request to the previous national assembly under Bukola Saraki but it was rejected.

In a related development, the senate on Tuesday also approved the federal government $5.5 billion loan request after Clifford Ordia, chairman committee on local and foreign debts, presented a report on the floor of the upper legislative chamber.