The senate president, Mr. Ahmad Lawan, said on Monday that the senate would pass the $29.96 billion loan request by President Muhammadu Buhari.
Speaking with journalists Lawan in Abuja while presenting the scorecard of the 9th senate in the last six months, Lawan however said the legislature would ensure adequate oversight.
He said unlike what transpired during the 8th senate, the president had provided all the information and details needed for the loan to be approved.
“We are going to be critical that every cent that is borrowed is tied to a project,” said Lawan.
It would be recalled that Buhari had in a letter to the senate president dated November 26, 2019, requested for the loan saying the 8th national assembly approved only a part of the external borrowing request forwarded to it in September 2016.
The letter entitled ‘Request for the National Assembly to re-consider and approve the Federal Government’s 2016 and 2018 External Borrowing Plan’ read: “Pursuant to Section 21 and 27 of the Debt Management Office (Establishment) Act, I hereby request for Resolutions of the Senate to approve the Federal Government’s 2016 – 2018 External Borrowing plan, as well as relevant projects under this plan.
“Specifically, the Senate is invited to note that: While I had transmitted the 2016-2018 External Borrowing Plan to the 8th National Assembly in September, 2016, this plan was not approved in its entirety by the Legislature.
“Only the Federal Government’s Emergency projects for the North East, (Four (4) States’ projects and one (1) China Exam Bank Assisted Railway Modernisation Projects for Lagos – Ibadan Segment) were approved, out of a total of thirty-nine (39) projects.
“The Outstanding projects in the plan that were not approved by the Legislature are, nevertheless, critical to the delivery of the Government’s policies and programmes relating to power, mining, roads, agriculture, health, water and educational sectors.
“These outstanding projects are well advanced in terms of their preparation, consistent with the 2016 Debt Sustainability Analysis undertaken by the Debt Management Office and were approved by the Federal Executive Council in August 2016 under the 2016 – 2018 External Borrowing Plan.
“Accordingly, I have attached, for your kind consideration, relevant information from the Honourable Minister of Finance, Budget and National Planning the specific outstanding projects under the 2016 – 2018 External Borrowing plan for which legislative approval is currently sought.
“I have also directed the minister to make herself available to provide any additional information or clarification which you may require to facilitate prompt approval of the outstanding projects under this plan.”
It would also be recalled that former chairman of the senate committee on local and foreign debt in the 8th senate, Mr. Shehu Sani who reacted to the president’s fresh request for the loan explained that the lawmakers turned down the request to save Nigeria from sinking into debts.
“If we had approved that loan request, our external debt could have catapulted to over $52bn and that is not sustainable.
“With the current escalation of borrowing, we will be walking into debt slavery and move from landlords to tenants in our own country.
“They will always tell you that even America is borrowing and I don’t know how rational it is to keep on borrowing because another country is borrowing.
“If we keep listening to bankers and contractors, we will keep borrowing and burying ourselves and leave behind for our children a legacy of debt burden.
“Loans are not charities. Most of those encouraging more borrowing are parasitic consultants, commission agents, rent-seeking fronts and contractors,” he said.
