By Sanni Onogu, Abuja
The Senate on Tuesday referred President Muhammadu Buhari’s $30 billion loan request under the Federal Government’s 2016–2018 External Borrowing Plan to its Committee on Local and Foreign Debts for further legislative work.
Senate Leader Yahaya Abdullahi had presented the loan request at plenary.
The Senate Committee on Local and Foreign Debts has Senator Clifford Ordia (PDP, Edo Central) as Chairman and Senator Bima Mohammed Enagi (APC, Niger South) as Vice Chairman.
The loan request has continued to attract criticisms from different quarters. But Senate President Ahmad Lawan hinted that the National Assembly may approve the loan.
Lawan addressed reporters in Abuja to mark his sixth month in office.
President Buhari, in a letter, dated November 26, 2019, said the Eighth National Assembly approved only a part of the External Borrowing Plan loan request forwarded to it in September 2016.
This, according to him, stalled his administration’s implementation of critical projects in the mining, power, health, agricultural, water and educational sectors.
President Buhari’s letter reads: “Pursuant to Section 21 and 27 of the Debt Management Office (Establishment) Act, I hereby request for Resolutions of the Senate to approve the Federal Government’s 2016-2018 External Borrowing plan, as well as relevant projects under this plan.
“Specifically, the Senate is invited to note that: While I had transmitted the 2016-2018 External Borrowing Plan to the Eighth National Assembly in September, 2016, this plan was not approved in its entirety by the Legislature; only the Federal Government’s emergency projects for the Northeast, four states’ projects and one China Exim Bank-Assisted Railway Modernisation Projects for Lagos–Ibadan segment) were approved out of 39 projects.
“The outstanding projects in the plan, which were not approved by the Legislature, are, nevertheless, critical to the delivery of the government’s policies and programmes relating to power, mining, roads, agriculture, health, water and educational sectors.
“These outstanding projects are well advanced in terms of their preparation, consistent with the 2016 Debt Sustainability Analysis undertaken by the Debt Management Office and were approved by the Federal Executive Council (FEC) in August 2016 under the 2016–2018 External Borrowing Plan.
“Accordingly, I have attached for your kind consideration relevant information from the Honourable Minister of Finance, Budget and National Planning, the specific outstanding projects under the 2016–2018 External Borrowing plan for which legislative approval is currently sought.
“I have also directed the Minister to make herself available to provide any additional information or clarification which you may require to facilitate prompt approval of the outstanding projects under this plan.”
Former Vice-President Atiku Abubakar yesterday cautioned the Federal Government over what he called its borrowing spree.
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He warned that endless borrowing will lead to “endless sorrowing”.
In a lengthy statement he personally signed in Abuja, Atiku said: “I have said it time and again. The business of government is too serious to be left in the hands of politicians. We must all ask questions because if they throw away the future, it is not going to be their future they are throwing away, it will be all our futures.
“The fact that Nigeria currently budgets more money for debt servicing (?2.7 trillion) than we do on capital expenditure (?2.4 trillion) is already an indicator that we have borrowed more money than we can afford. And the thing is that debt servicing is not debt repayment. Debt servicing just means that we are paying the barest minimum allowable by our creditors.
“And while spending 50 per cent of our current revenue on debt servicing, this administration wants to take further loans of $29.6 billion! To say that this is irresponsible is itself an understatement.
“As a businessman, one of the very first things I learnt is that you do not take loans except you are expanding your business. Even as an individual, when your income cannot fund your lifestyle, you are challenged to grow your income, not your borrowings…”
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