Nigeria’s Senate on Tuesday unanimously rejected plans by President
Muhammadu Buhari to engage in external borrowing of $29.960billion for
execution of key infrastructural projects across the country between 2016
and 2018.
Without even a debate, Senators outrightly shut down the mention of the
Executive letter requesting approval to borrow $29.960billion.
As soon as Senate Leader, Senator Ali Ndume stated “that the Senate do
consider the request of the President Commander in Chief on the 2016 –
2018 External Borrowing Rolling Plan,” the mood in the chambers changed.
Soon after Ndume’s remarks, Senate President Bukola Saraki now puts it to
Vote and the Nays had it. Senator Saraki who was surprised and trying to
give President Buhari a soft landing, decided to put it into vote the
second time and the Nays still had it and he ruled.
It would be recalled that President Muhammadu Buhari had on Tuesday last
week written to the National Assembly seeking for the approval of external
borrowing plan of $29.960billion for execution of key infrastructural
projects across the country between 2016 and 2018.
The letter titled, “Request for Approval of Federal Government 2016 – 2018
External Borrowing( Rolling) Plan” was read on the floor of the Senate”
President Buhari had explained in the letter that external borrowing plan
would be targeted at projects which cut across all sectors with special
emphasis on infrastructure, Agriculture, Health, Education , Water supply
, Growth and employment generation , poverty reduction through social
safety net programmes and governance and financial management reforms etc.
According to him,” the total cost of the projects and programmes under the
borrowing (rolling) plan is $29.960billion made up of proposed projects
and programmes loan of $11.274billion, Special National Infrastructure
projects $10.686billion, Euro bonds of $4.5 billion and Federal Government
budget support of $3.5billion “.
The President who also explained that the loan was very necessary in view
of the serious infrastructural deficit, the nation is facing, said,
“Considering the huge infrastructure deficit currently being experienced
in the country and the enormous financial resources required to fill the
gap in the face of dwindling resources and the inability of our annual
budgetary provisions to bridge the deficit, it has become necessary to
resort to prudent external borrowing to bridge the financing gap, which
will largely be applied to key infrastructure projects namely Power,
Railway and roads projects among others.”