Again, Senate approves Buhari’s $16bn, €1bn foreign loans

The Senate has again approved President Muhammadu Buhari’s request to borrow $16,230,077,718 and €1,020,000,000 from multilateral lenders to fund its legacy projects.

The President had in September requested the loans as part of the 2018-2020 borrowing plan.

The Senate’s approval of the loans followed the consideration of the report of its Committee on Local and Foreign Debts headed by Senator Clifford Ordia.

The Red Chamber also approved grant components of $125 million.

The Senate asked President Buhari to forward the terms and conditions of the loans from the funding agencies to the National Assembly.

Also Read: President Buhari requests more external loans

In his presentation, Ordia said the projects for which funds are requested in the 2018-2020 borrowing plan are ongoing.

The projects, according to him, will stimulate a rebirth of commercial and engineering activities, and the consequent tax revenues payable to the government as a result of the activities will increase.

He said: “It will be recalled that the Senate at plenary in July 2021 approved financing for projects as recommended by the Committee above whilst the Committee continued further legislative action and consideration of the outstanding request.

“Subsequently, on September 15, 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.

“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.”