Senate Approves Buhari’s Request For $8.325m, €490m External Loans

The Senate on Thursday approved President Muhammadu Buhari’s
request for ongoing external loans to the tune of $8,325,526,537
and €490,000,000 (Euros) under the 2018-2020 External Borrowing
(Rolling) Plan.

The approval followed the consideration of a report on the
2018-2020 External Borrowing (Rolling) Plan by the Committee on
Local and Foreign Debt.

The Chairman of the Committee, Sen. Clifford Ordia, in his
presentation, said the committee noted with utmost importance, the
genuine and very serious concerns of Nigerians about the level and
sustainability/serviceability of the country’s borrowings in the
last decade.

According to the lawmaker: “Our (Nigeria’s) debt service figures
constitute a huge drain on our revenue to the extent that it
accounts for over 30 per cent of our expenditure in the annual
budget.”

Ordia explained that due to the shortfall in the country’s
annual revenues in relation to the need for rapid infrastructural
and human capital development: “we have had to pass deficit budget
every year, requiring us to borrow to finance the deficit in our
budget”.

He noted that out of the total borrowing request of
$36,837,281,256 contained in the re-forwarded request of Mr
President, $26,154,536,533 is for funds proposed to be borrowed
from various financial institutions from the Peoples Republic of
China.

He stressed that the proposed projects in the Ministries of
Transportation, FCT, Aviation, Works and Housing, Agriculture,
Water Resources and some commissions were mostly ongoing projects
and programmes in respect of which External Borrowed funds had been
spent in the past, including loans.

“These projects have a great multiplier effect on stimulating
economic growth through infrastructure development, job creation
and poverty alleviation, stimulation of commercial and engineering
activities, and the consequent tax revenues payable to government
as a result of these productive activities,” Ordia explained.

The funding agencies are: World Bank – $796,000,000; China Exim
Bank – $2,901,026,509; Industrial Commercial Bank of China –
$2,484,555,304; African Development Bank – $104,200,000; Africa
Growing Together Fund – $20,000,000.

Others are: “French Development Agency -€240,000,000; European
Investment Bank – €250,000,000; European ECA/KfW/IPEX/AFC –
$1,959,744,724; and International Fund For Agricultural Development
(IFAD) – $60,000,000.” (NAN)

The Senate on Thursday approved President Muhammadu Buhari’s
request for ongoing external loans to the tune of $8,325,526,537
and €490,000,000 (Euros) under the 2018-2020 External Borrowing
(Rolling) Plan.

The approval followed the consideration of a report on the
2018-2020 External Borrowing (Rolling) Plan by the Committee on
Local and Foreign Debt.

The Chairman of the Committee, Sen. Clifford Ordia, in his
presentation, said the committee noted with utmost importance, the
genuine and very serious concerns of Nigerians about the level and
sustainability/serviceability of the country’s borrowings in the
last decade.

According to the lawmaker: “Our (Nigeria’s) debt service figures
constitute a huge drain on our revenue to the extent that it
accounts for over 30 per cent of our expenditure in the annual
budget.”

Ordia explained that due to the shortfall in the country’s
annual revenues in relation to the need for rapid infrastructural
and human capital development: “we have had to pass deficit budget
every year, requiring us to borrow to finance the deficit in our
budget”.

He noted that out of the total borrowing request of
$36,837,281,256 contained in the re-forwarded request of Mr
President, $26,154,536,533 is for funds proposed to be borrowed
from various financial institutions from the Peoples Republic of
China.

He stressed that the proposed projects in the Ministries of
Transportation, FCT, Aviation, Works and Housing, Agriculture,
Water Resources and some commissions were mostly ongoing projects
and programmes in respect of which External Borrowed funds had been
spent in the past, including loans.

“These projects have a great multiplier effect on stimulating
economic growth through infrastructure development, job creation
and poverty alleviation, stimulation of commercial and engineering
activities, and the consequent tax revenues payable to government
as a result of these productive activities,” Ordia explained.

The funding agencies are: World Bank – $796,000,000; China Exim
Bank – $2,901,026,509; Industrial Commercial Bank of China –
$2,484,555,304; African Development Bank – $104,200,000; Africa
Growing Together Fund – $20,000,000.

Others are: “French Development Agency -€240,000,000; European
Investment Bank – €250,000,000; European ECA/KfW/IPEX/AFC –
$1,959,744,724; and International Fund For Agricultural Development
(IFAD) – $60,000,000.” (NAN)