Senate rejects Buhari’s plan to take $30bn loan

The Senate today unanimously threw out plans by President Muhammadu Buhari to engage in external borrowing of $29.960billion for execution of key infrastructural projects across the country between 2016 and 2018.

The Senate did not even discuss it as it was killed immediately it was mentioned as an executive communication by Senate Leader, Senator Ali Ndume “that the Senate do consider the request of the President Commander in Chief on the 2016 – 2018 External Borrowing Rolling Plan.”

Soon after Ndume’s remarks, Senate President Bukola Saraki now puts it to vote and the nays carrying the day.

Senator Saraki who was surprised and trying to give President Buhari a soft landing, decided to put it into vote the second time and the nays still had it and he ruled.

It would be recalled that President Muhammadu Buhari had on Tuesday last week written to the National Assembly seeking for the approval of external borrowing plan of $29.960billion for execution of key infrastructural projects across the country between 2016 and 2018.

The letter titled, “Request for Approval of Federal Government 2016 – 2018 External Borrowing( Rolling) Plan” was read on the floor of the Senate”

President Buhari had explained in the letter that external borrowing plan would be targeted at projects which cut across all sectors with special emphasis on infrastructure, Agriculture, Health, Education , Water supply , Growth and employment generation , poverty reduction through social safety net programmes and governance and financial management reforms etc.

According to him,” the total cost of the projects and programmes under the borrowing (rolling) plan is $29.960billion made up of proposed projects and programmes loan of $11.274billion, Special National Infrastructure projects $10.686billion, Euro bonds of $4.5 billion and Federal Government budget support of $3.5billion “.

The President who also explained that the loan was very necessary in view of the serious infrastructural deficit, the nation is facing, said, “Considering the huge infrastructure deficit currently being experienced in the country and the enormous financial resources required to fill the gap in the face of dwindling resources and the inability of our annual budgetary provisions to bridge the deficit, it has become necessary to resort to prudent external borrowing to bridge the financing gap, which will largely be applied to key infrastructure projects namely Power, Railway and roads projects among others.”

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