President Muhammadu Buhari on Tuesday got approval from the House of Representatives of his loan request of $5.8 billion and $10 million foreign grant.
The Nigerians government is negotiating the loan with the World Bank, Islamic Development Bank, China Exim Bank, Chinese Africa Development Fund, and International Fund for Agricultural Development.
The House of Representatives members asked after approval of the loan requested the President to send the terms and conditions of the loan from the global financial institutions to the National Assembly for proper execution.
Chairman of the House Committee on Aids, Loans and Debt Management, Ahmed Safana (APC-Katsina), submitting the report of the committee, explained that of the total loan of $5.8 billion, $2.3 billion will be disbursed for the Grid Modernization and Expansion Programme, $290,000,000 for the malaria project, $700,000,000 for the Sustainable Water Supply, Sanitation and Hygiene (WASH) Project, $786,382,967 for the Gurara Phase II project, among others.
According to the committee chairman: “That the House do consider Final Report of the Committee on Aids, Loans and Debt Management on the Proposed 2018–2020 External Borrowing (Rolling) Plan No.3 (Laid:14/12/2021) – Committee of Supply.
“That the House do approve the under listed ongoing negotiation of external borrowing of $5,803,364,553.50 and a Grant component of $10,000,000 under the 2018-2020 External Borrowing (Rolling) plan.”
The loan was said to be part of the federal government’s 2018-2020 external borrowing plan.
Meanwhile, Nigeria’s debt profile has continued to rise, with multiplier effects of increasing budgetary allocations for debt servicing yearly.