Despite criticisms from the public, the Senate Wednesday approved President Muhammadu Buhari’s External Borrowing (Rolling) plan for the Federal Government.
The loans are $16,230,077,718, €1,020,000,000 and a grant component of $125,000,000.00 under the 2018-2020 External Borrowing (Rolling) plan” for the Federal Government.
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.
Senate’s approval was sequel to the consideration of the report of the Senate Committee on Local and Foreign Debts.
The report was presented by the Chairman of the Committee, Senator Clifford Ordia, PDP, Edo Central during the plenary.
Ordia said projects will result in a rebirth of commercial and engineering activities and the consequent tax revenues payable to Government as a result of these productive activities will increase.
“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,” Ordia said.
“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 Senator said 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 $2.8 billion, that is 10 per cent has been disbursed to Nigeria.
Ordia said the projects require additional financing and “will have a great multiplier effect on stimulating economic growth through infrastructure development, job creation, poverty alleviation, health care and improve our security architecture.”
