The Senate has approved President Muhammadu Buharis loan request for the sum of $16.2 billion, 1.02 billion Euros, under the FG’s 2018-2020 External Borrowing plan.
Also approved was a grant component of $125 million (USD), and the request to the Bank of Industries for the issuance of 500 million (Euros) but no more than 750 million Eurobond in the International Capital Market.
The Uppwr Chambers 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.
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, in his presentation, said President Buharis request was in compliance with the provisions of the Debt Management Office (Establishment) Act 2003 and the Fiscal Responsibility Act 2007.
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 stated that 345,000,000 million euros is expected to be sourced from the French Development Agency (AFD); 175,000,000 million from the European Investment Bank; USD 190,255,276 million from European ECA/KfW/IPEX/AFC; 500,000,000 from the International Capital Market; and USD 62,120,000 from Standard Chartered Bank/SINOCURE.
Senator Ordia explained that the Committee in reaching its resolutions, noted the serious concerns of Nigerians about the level and sustainability of the countrys borrowing in the last decade.
Ordia said Nigerias debt figures, which continue to increase, reached an all-time high of around 95% of retained revenue and 35% of its annual expenditure.
