President Seeks Senate Approval For Fresh $4.179bn, €710m External Loans
President Muhammadu Buhari has formally sent a letter to the Senate seeking its consideration and approval of $4.179 billion ($4.054 billion and $125 million) as well as £710 million external loans to fund projects captured under the 2018-2021 borrowing plan.
But the Peoples Democratic Party (PDP) yesterday vehemently rejected the move by the president, alleging that the Buhari-led All Progressives Congress (APC) was on a mission to mortgage the country.
The loan requests were the second time in 2021, that President Buhari would be asking the upper legislative chamber for approval of external loan to fund critical projects in the country.
Last May, the President sought the approval of the Senate to borrow $6.1 billion from the international capital market which the Red Chamber graciously approved shortly before going on a two-month long annual vacation in July, 2021.
The latest letter of request dated August 24, 2021 by President Buhari was read at yesterday plenary by President of the Senate, Dr. Ahmad Lawan.
The President in the letter explained that the projects listed in the 2018-2021 Federal Government Borrowing Plan are to be financed through sovereign loans from the World Bank, French Development Agency (AFD), China-Exim Bank, International Fund for Agricultural Development (IFAD), Credit Suisse Group and Standard Chatered/China Export and Credit (SINOSURE) in the total sum of $4,054,476,863.00; €710,000,000.00 and Grant Component of $125,000,000.00.
He explained that the amount would be used to fund federal and state projects cut across key sectors such as infrastructure, health, agriculture and food security, energy, education and human capital development and COVID-19 Response efforts.
According to the president, the projects which are spread across the six geo-political zones of the country would bring about employment generation and poverty reduction, as well as protection of the most vulnerable and very poor segments of the Nigerian society.
The letter read in part: “I write in respect of the above subject and to submit the attached addendum to the proposed 2018-2021 Federal Government External Borrowing (Rolling) Plan for the consideration and concurrent approval of the Senate for same to become effective.
“The Senate President may wish to recall that I earlier transmitted a request on the proposed 2018-2020 Federal Government External Borrowing Plan for the concurrent approval of the Senate in May, 2021.
“However, in view of other emerging needs and to ensure that all critical projects approved by FEC as at June 2021 are incorporated, I hereby forward and addendum to the proposed Borrowing Plan.
“The projects listed in the addendum to the 2018-2021 Federal Government External Borrowing Plan are to be financed through sovereign loans from the World Bank, French Development Agency (AFD), China-Exim Bank, International Fund for Agricultural Development (IFAD), Credit Suisse Group and Standard Chartered/China Export and Credit (SINOSURE) in the total sum of $4,054,476,863.00; €710,000,000.00 and Grant Component of $125,000,000.00.”
The president added: “The Senate is kindly invited to note that the projects and programmes in the Borrowing Plan were selected based on positive, technical and economic evaluations and the contribution they would make to the socio-economic development of the country including employment generation and poverty reduction as well as protection of the most vulnerable and very poor segments of the Nigerian society.
“The Senate may also wish to note that all the listed projects in the addendum form part of the 2018-2021 External Borrowing Plan and cover both the federal and states government projects and are geared towards the realisation of the Nigeria Economic Sustainability Plan that cut across key sectors such as infrastructure, health, agriculture and food security, energy, education and human capital development and COVID-19 response efforts.
“A summary of some key projects in each of the six geo-political zones and a summary on the expected impacts on the socio-economic development of each of the six geo-political zones are attached herewith as Annex II and III.
“Given the importance attached to the timely delivery of the projects listed in the proposed Borrowing Plan and the benefits both the federal and state governments stand to gain from the implementation of same, I hereby wish to request for the kind consideration and concurrent approval of the Senate for projects listed in the addendum to the 2018-2021 Federal Government External Borrowing Plan to enable the projects become effective.”
