The Nigerian Senate has approved President Bola Tinubu’s request of 2022-2024 external borrowing rolling plan of 7.4 billion dollars and 100 million euros.
This followed a presentation and adoption of the report of the Committee on Local and Foreign Debt at plenary on Saturday by the Vice Chairman Senator Haruna Manu(PDP- Taraba).
Senator Manu, while presenting the report, said the committee noted with utmost importance, the genuine and very serious concerns of Nigerians about the level and sustainability, serviceability of the nation’s borrowing activities in the last decade.
He said the debt service figures constitute a huge drain on the nation’s revenue to the extent that it accounts for over 30 percent of its expenditure in the annual budget.
Senator Manu said due to the shortfall on the nation’s annual revenue in relation to its need for rapid infrastructural and human capital development, the National Assembly have had to pass deficit budget every year.
This, he said required borrowing to finance the deficit in the budget.
Senator Manu said the borrowing request seeking approval of National Assembly was proposed to be borrowed from various financial institutions.
President Tinubu had in a letter to the Senate, said that the Federal Executive Council under former President Muhammadu Buhari approved the loan facility on May 15, 2023, to finance health, education, infrastructure, agriculture, insecurity, and other sectors.
According to him, the proposed projects were mostly ongoing projects and programmes in respect of which external borrowed funds have been spent in the past, including loans.
“The projects have a great multiplier effect on stimulating economic growth through infrastructure development, job creation and poverty alleviation, stimulation of commercial and engineering activities. The projects also have consequent tax revenues payable to government as a result of the productive activities.
“The committees found that the World Bank has expressed its willingness to provide funds to improve the reliability of electricity supply, achieve financial and fiscal sustainability, and enhance accountability and to also ensure that all existing grid-connected capacity is utilised to deliver more power. The projects are also intended to improve states’ land administration, business-enabling environment and public Private partnership”.
Ways and Means Revenue
Similarly, Senate also gave expeditious approval for securitisation of the balance of N7.3trillion ways and Means revenue in the Consolidated Revenue Fund (CRF) of Nigeria.
The approval followed expeditious consideration of its request for approval by President Bola Tinubu in a letter addressed to President of Senate, Godswill Akpabio and read at plenary.
Senate also confirmed President Bola Tinubu’s nominations of Executive Commissioners for the Nigerian Upstream Petroleum Regulatory Commission (NUPRC).
This followed the adoption of report of Joint Committee on Petroleum Upstream on screening of the nominees.
The nominees confirmed are Bashir Indabawa North-West , Executive commissioner, exploration and acreage management. Kelechi Ofoegbu , South-East, Executive Commissioner, Corporate Services and Administration. Enorense Amadasu South-South , Executive Commissioner, Development and Production. Babajide Fasina South-West, Executive Commissioner, Economic Regulation and Strategic Planning.
Senate thereafter, adjourned plenary to January 23, 2024.
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