Senate approves $6.1bn external loan request

08 Jul Senate approves $6.1bn external loan request

The Senate on Wednesday approved a loan request of $6.1 billion (about N2.343trillion) by President Muhammadu Buhari.

The amount was approved following the consideration of the report of the Senate Committee on Local and Foreign Debts at plenary presented by its chairman, Senator Clifford Ordia.

The Upper Chamber in its resolution directed the Minister of Finance, Budget and National Planning, Zainab Ahmed, the Director General of the Debt Management Office, Patience Oniha, and the Governor of the Central Bank of Nigeria, Godwin Emefiele, to submit to the National Assembly within 10 working days (excluding the day of close of trading), a letter containing the United States Dollars amount so raised and received as a result of the approval together with the applicable exchange rate.

The sum is expected to be sourced through the Issuance of Eurobond in the International Capital Market.

In his remarks, Senate President, Ahmad Lawan, stressed that the approved external borrowing is not a fresh loan by the President Buhari administration but a request captured in the 2021 Appropriation Act passed by the National Assembly last year.

He, however, tasked Committees of the National Assembly to carry out strict oversight on how the loans are applied to the implementation of the 2021 budget.

Lawan urged Ministries, Departments and Agencies of Government, entrusted with the management of the funds to ensure prudent application to projects across the country.

“Our committees should be alert on how the funds that will be borrowed will be used.

“No frivolous expenditures should be entertained. I imagine that everybody in the trust of public funds, especially these laws will be as prudent and economical as possible,” he said.