The Senate has approved President Muhammadu Buhari’s request for external loans amid protests by some members that the Upper Chamber of the National Assembly was not furnished with the Terms and Conditions for the loan.
Leading the debate on the $16.2bn, €1bn loan request; with a projected grant of $125m under the 2018-2020 External Borrowing (Rolling) plan, the Senate President, Ahmad Lawan expressed reservations at the absence of Terms and Conditions for the loan.
He said, “Let me emphasize here that we will really be interested in the final terms and conditions because that should guide us in the appropriation as well not only for this but with other subsequent requests and the conditions.”
The Senate approval followed the consideration and adoption of the report of its Committee on Local and Foreign Debt.
The Senate President’s concern was closely followed by a sharp disagreement by lawmakers on whether the President had submitted the loan request for concurrence or approval.
In his contribution, the Deputy President of the Senate, Ovie Omo-Agege said, “my understanding is that the approval we are giving today is to enable them commence negotiation. We have not given approval to the terms and conditions. We have not seen that. I don’t know what that is. We are now saying that the terms and conditions should be brought back to us for approval.”
Agege’s position was however countered by Senator Opeyemi Bamidele (APC Ekiti Central) cautioned lawmakers that “this is a legal word. It is a constitutional issue; and also the letter of request from Mr President requesting for approval not the concurrence of the Senate.
Sir, what is before us is the issue of the request for approval. What they have come to seek is an approval not a concurrence.”
President Muhammadu Buhari had in a letter to the Senate on September 15, 2021, requested the Red Chamber to approve $4,054,476,863, €710,000,000 and $125,000,000 loans.
The loans are to be sourced from the World Bank, China EXIM Bank, Industrial & Commercial Bank of China, China Development Bank, Africa Development Bank (AfDB), French Development Bank (AFD), European Investment Bank, International Capital Market, and Standard Chartered Bank.
The loans, Buhari said, were to finance critical infrastructural projects across the country.
The chairman of the committee, Senator Clifford Ordia (PDP, Edo), said his panel found that out of a sum of over $22.8billion earlier approved borrowing by the National Assembly under the 2016-2018 External Borrowing Rolling Plan, only $2.8billion, that is, 10% has been disbursed to Nigeria.
“The Committee therefore notes that the great pressure placed on the human and financial resources of the National Assembly to approved loans under the Medium Term External Borrowing Plans is unnecessary.
“The committee observes that these projects, some of which requires additional financing, will have a great multiplier effect on stimulating economic growth through infrastructure development, job creation, poverty alleviation, health care and improve our security architecture,” he said.
