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Senate approves Buhari’s $16bn, €1bn external loan request

The Senate on Wednesday approved President Muhammadu Buhari’s External Borrowing (Rolling Plan) request in the sum of $16,230,077,718, and €1,020,000,000.

Also approved by the upper chamber was a grant component of $125 million.

The loans are to be funded by the World Bank, China Exim Bank, industrial, and commercial banks as well as African Development Bank (AfDB) among others.

Wednesday’s approval was sequel to the consideration of the report of the Senate Committee on Local and Foreign Debts, as presented by the Chairman of the Committee, Senator Clifford Ordia.

Ordia, while presenting the report, said the projects which funds are requested for in the 2018-2020 borrowing plan are ongoing.

The lawmaker noted that the said projects will stimulate a “rebirth of commercial and engineering activities and the consequent tax revenues payable to Government as a result of these productive activities will increase.”

In September 2020, President Buhari requested the facilities in an addendum to the 2018-2020 borrowing plan. The National Assembly had in July approved $8.3 billion and €490 million as initial loan requests.

Making a case for the extra request, the president stated that the loans would stimulate the economy and create jobs.

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