The Senate on Wednesday approved President Muhammadu Buhari’s loan request of $16,230,077,718 billion, €1,020,000,000 billion, under the 2018-2020 External Borrowing plan.
Also approved was a grant component of $125 million and the request to the Bank of Industries for the issuance of €500 million.
The chamber’s approval of the loan requests was, however, accompanied by a resolution that the terms and conditions of the loan from the funding agencies be forwarded to the National Assembly prior to its execution for approval and proper documentation.
A statement signed by the Senate President, Ahmed Lawan’s spokesman, Ezrel Tabiowo, said the approval followed the consideration of a report by the Committee on Local and Foreign Debt on the proposed 2018-2020 External Borrowing (Rolling) Plan.
Chairman of the Committee, Senator Clifford Ordia (PDP, Edo Central), in his presentation, said Buhari’s request was in compliance with the provisions of the Debt Management Office (Establishment) Act 2003 and the Fiscal Responsibility Act 2007.
Odia said the provisions of the statutes enjoin the President to seek and obtain the approval of the National Assembly in respect of the External Borrowing Programme of the Federation and States.
He explained that out of the total amount approved by the National Assembly, the sum of $3,529,300,000 billion would be sourced from the World Bank; $5,078,441,252 billion from China EximBank; $3,902,267,260 billion from Industrial & Commercial Bank of China; $2,893,693,930 billion from China Development Bank; and $698,500,000 billion from the Africa Development Bank (AfDB).
In addition, he said €345,000,000 million is expected to be sourced from the French Development Agency (AFD); €175,000,000 million from the European Investment Bank; $190,255,276 million from European ECA/KfW/IPEX/AFC; €500,000,000 from the International Capital Market; and $62,120,000 from Standard Chartered Bank/SINOCURE.