OrderPaperToday – Ahead of the passage of the 2022 Appropriation Bill, the Senate on Wednesday approved the sum of $5,803,364,553.50 USD borrowing and a grant component of N10 million USD under the 2018-2020 External Borrowing (Rolling) plan.

This was sequel to the consideration of a report by Senator Clifford Ordia, Chairman of Senate Committee on Local and Foreign Debts.

The senate’s approval came barely 24 hours after the House of Representatives endorsed the fresh borrowing.

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The Committee in its observations noted the concerns of Nigerians about the level of sustainability and serviceability of Nigeria’s borrowing within the last decade.

It also reiterated its stance on the need for a more proactive and broad based approach to revenue enhancement related issues, adding that “there are noticeable improvements in the country’s revenues.”

In his presentation, Sen. Clifford said $2,300,000,000 would be sourced from the World Bank, $2,300,000,000 from the German Consortium, $90,000,000 from the Islamic Development, 786,382,967 from the China Exim Bank, $276,981,586.50 from the Bank of China, and $50,000,000 from the International Fund for Agricultural Development.

Recall that President Buhari in a letter dated May 6, 2021, had requested the Senate to consider and approve the Federal Government 2018-2020 External Borrowing (Rolling) plan.

According to the lawmaker, the 2018-2020 External Borrowing (Rolling) Plan contained a request for approval in the sum of $36,837,281,256 (Thirty Six Billion, Eight Hundred and Thirty Seven Million, Two Hundred and Eighty One Thousand Two Hundred and Fifty Six United States Dollars) plus €910,000,000 (Nine Hundred and Ten Euros) and Grant Component of $10,000,000 (Ten Million United State Dollars).

He also mentioned that a report was laid by his Committee before the Senate in July 2021 recommending approval of the sum of $8,575,526,537 (Eight Billion, Five Hundred and Seventy Five Million, Five Hundred and Twenty Six Thousand, Five Hundred and Thirty Seven United States Dollars) and €490,000,000 (Four Hundred and Ninety Million Euro).

Recall also that OrderPaper Nigeria reported that the Senate read another letter, dated  September 15, 2021 from President Buhari, containing an addendum to the 2018-2020 External Borrowing (Rolling) Plan in the sum of $4,054,476,863, €710,000,000 and Grant Component of $125,000, 000 for various projects and same was also referred to the Committee for further legislative action.

Senator Ordia reminded the Senate that a second report was laid by his Committee, during plenary in November 2021 recommending approval of the sum of $16,229,577,718 (Sixteen Billion, Two Hundred and Twenty Nine Million, Five Hundred and Seventy Seven Thousand, Seven Hundred and Eighteen USD), €1,020,000,000 (One Billion and Twenty Million euros) and a Grant component of $125,000,000 (One Hundred and Twenty Five Million USD).

In accordance with the recommendation of the Committee, the Senate at Plenary in November 2021 approved the sum as financing for projects as recommended by the panel.

He explained that the request for the approval of $5.8 billion USD was part of the mandate of the Committee in respect of the 2018-2020 External Borrowing (Rolling) plan.

 

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