The Nigerian Senate has received a letter from President Buhari seeking approval for $4 billion and €710 million external loans.
The letter which was addressed to the Senate President, Ahmad Lawan, was read at plenary today Tuesday., September 14.
In the letter, the President stated that the proposed loan is to be financed through sovereign loans from the World Bank, French Development Agency, EXIM Bank and IFAD, adding that the loan would enable the Federal Government fund critical infrastructural projects in different sectors.
Interestingly, this comes just days after Peter Obi, a former Vice Presidential candidate of the People’s Democratic Party (PDP), stated that Nigerians are getting poorer because the government was borrowing for the wrong reasons, adding that the Nigerian government is obtaining loan for consumption rather than for productivity.
The letter reads in part:
“I write on the above subject and submit the attached addendum to the proposed 2018-2020 external rolling borrowing plan for the consideration and concurrent approval of the Senate for the same to become effective.
“The distinguished Senate President may recall that we submitted a request on 2018-2020 borrowing plan for the approval of the Senate in May 2021.
“However, in view of other emerging needs and to ensure that all critical projects approved by FEC as of June 2021 are incorporated, I hereby forward an addendum to the proposed borrowing plan.
“The projects listed in the external borrowing plan are to be financed through sovereign loans from the World Bank, French Development Agency, EXIM Bank and IFAD in the total sum of $4,054,476,863 and €710 million and grant components of $125 million.”
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