The Nigerian Senate has approved $16 billion and €1 billion loans request by President Muhammadu Buhari. The upper legislative chamber, on Wednesday approved the loan, which the president said would create jobs and stimulate the economy.
The Ahmad Lawan -led Senate also approved grant components of $125 million – which Buhari had requested the facilities in an addendum to the 2018-2020 borrowing plan in September.
The loan is expected to come from development partners such as the World Bank, African Development Bank, and the French Development Agency, AFD.
Senate committee chairman on local and foreign debts, Clifford Odia said the projects for which funds are requested in the 2018-2020 borrowing plan are ongoing.
Ordia further stated that these projects will stimulate economic activities across the country as well as drive government tax revenue.
He said, “subsequently, on the 15th of September 2021, the President of the Senate of the federal republic of Nigeria read another Communication from the President and Commander in Chief of the Armed Forces, 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,” Ordia said.
“The committee notes that a good number of the projects in respect of which financing is being requested under the 2018-2020 external borrowing (rolling) plan are mostly ongoing projects and programmes in respect of which external borrowed funds have been spent in the past, including loans and grants.”