The House of Representatives has given the reason it approved the $5.5 billion loan request from the executive. The lower house said on Thursday it believes President Muhammadu Buhari is trustworthy and keeps to his words.
Nigeria’s debt has been mounting since Buhari took over in 2015.
The upper chamber too ratified the borrowing—of $5.5 billion made up of $2.5 billion to fund the 2017 budget and another $3 billion to re-finance the country’s domestic debts.
Abdulrazak Namdas, the Chairman of the House Committee on Media and Public Affairs, told journalists that after studying the projects outlined to be executed with the proceeds of loan, the House realised that they are essential for rapid economic development.
Some of the projects to be funded with the loan are the Mambilla Hydropower project, construction of a second runway at the Nnamdi Azikiwe International Airport, counterpart funding for rail projects and the construction of the Bode-Bonny Road, with a bridge across the Opobo Channel.
He added that the loan proceeds would enhance social development of the country and considering the president’s integrity, they had no option than to approve the loan.
“If you have a person that sticks to his words and with President Muhammadu Buhari, we have no doubt that this loan will be put to good use,” he said.
He also explained that the nation was just recovering from recession and there was need to inject more money into the economy to rejig it adding that the terms and conditions of the loan were favourable and not injurious to the nation.
“We just came out of recession and we need to spend money on infrastructure. Borrowing is part of ways to rejig the economy but it is not good to borrow for frivolous items.
However, when you borrow to invest, there is nothing wrong about it.”
Namdas assured that the House will also step up its oversight function to ensure that the loan was judiciously expended on the projects outlined.
“We don’t just approve the loan, we are going to do oversight and ensure that the loan is properly utilised.”