The Senate is asking the Federal Government to disclosed the sources of its proposed loans of $22.6 billion before it would know whether to give approval or not.
The Senate has also demanded a sovereign guarantee for the loans to ensure repayment. The loans, according to the federal government will, however, be obtained over a four-year period and spent on 39 projects across the country.
The Nation reports that: “Even though the sources of the loans are domiciled with the Debt Management Office (DMO), they have officially confirmed that these will come from China, World Bank, IMF and other international lenders. They have submitted the list of lenders to us and how to access the loans.
“Some of the loans might be in cash or in terms of goods/ items. And contrary to insinuations, some states are going to benefit from these loans.
“We have also asked for Sovereign Guarantee for the amount to be borrowed to allay the fears of Nigerians that the nation might be plunged into debts for the next generation. We are really being careful in scrutinizing the request from the Federal Government.”
The source gave some features of the loans as follows:
The $22.6 billion was a carry-over of $30billion loan request from the 8th Senate which approved over $6.8billion to $7billion. It is not fresh loans. The facility will be spread over four years, not one-off request/ approval. Some states and MDAs will benefit. Projects cut across the six geopolitical zones.
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Other projects have also been identified apart from legacy ones, Some loans will come in cash or as goods/ items
The source said findings by the Senate revealed that since the loans will be used for many projects, the chamber has insisted that all the MDAs should defend every project.
The source added: “We know the implications of taking loans and we have insisted that we cannot be rubber-stamped for approval. In fact, we have asked the Executive arm to defend every project which the credit will be used for.
“All those concerned and MDAs have been coming and we have taken them up on what the loans will be used for.
“There are lots of projects to be executed with the loans including legacy projects like the East-West Road, the Second Niger Bridge, the Mambilla Power Project, Lagos-Ibadan Expressway among others.”
When contacted, the Chairman of the Senate Committee on Finance, Sen. Solomon Olamilekan Adeola, said: “The Senate has gone far in considering the President’s request. We have conducted a public hearing for clarifications on what the loans are meant for.
“So far, the consideration has got to an advanced stage. Expectedly, our report should be ready on or before the end of the month or in the first week of March.”
President Buhari, in a letter, dated November 26, 2019, said the 8th National Assembly approved only a part of the External Borrowing Plan loan request forwarded to it in September 2016.
This, according to him, stalled his administration’s implementation of critical projects in the mining, power, health, agricultural, water and educational sectors.
President Buhari’s letter reads: “Pursuant to Section 21 and 27 of the Debt Management Office (Establishment) Act, I hereby request for Resolutions of the Senate to approve the Federal Government’s 2016-2018 External Borrowing plan, as well as relevant projects under this plan.”
