President Muhammadu Buhari has got the approval of the Senate to borrow another $6.1bn (N2.343trn) from multilateral and bilateral lenders as well as the international capital market.
The senate gave the go ahead on Wednesday following the presentation of the report of the Senate Committee on Local and Foreign Debts at plenary. Chairman of the committee, Senator Clifford Ordia, presented the report.
It would be recalled that the President had in May, 2021asked the National Assembly to consider and approve the loan.
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He also disclosed that the National Assembly already approved the borrowing of N4.6 trillion in the 2021 Appropriation Act and that the new borrowing of N2.3 trillion will part-finance the deficit in the 2021 budget.
In his presentation, Senator Ordia said the request is not new as it had already been approved in the borrowing plan when the National Assembly passed the 2021 Appropriation Bill.
“What we are about to pass is not a new borrowing, it has been approved in the 2021 budget,” he said.
After the approval, the Senate President, Ahmad Lawan, said the National Assembly must make sure that there are no frivolous expenditures by the executive.
“Let me thank the committee, this is not a new loan. This is a borrowing plan we have approved. What we have done is to provide the necessary resolutions for the implementation of it.
“Every cent counts. Our committees must be alive to oversee it. No frivolous expenditures should be entertained.”
The President had said the loan will be used to fund “projects from priority sectors of the economy namely: power, transportation, agriculture and rural development, education, health, provision of counterpart funding for multilateral and bilateral projects, defence and water resources.”