Update: Senate approves Buhari’s loan request

The Senate has approved president Muhammadu Buhari’s loans of $28.2 billion.

While the senate granted the president Buhari’s request to borrow $5.5 billion for COVID-19 and key projects, the house of representatives also approved a $22.7 billion which was rejected last year.

The green chamber approved the request at Tuesday’s plenary session after it considered the report of its committee on aids, loans and debt management.

When he sent the request in 2019, Buhari said the loan will be used to finance key infrastructures in the country.

But some lawmakers particularly those in the south-east were against the move, alleging that the region was excluded in the loan’s implementation plan.

The criticisms had led to suspension of the loan approval which has now been debated and passed after much plea from the speaker, Femi Gbajabiamila

Gbajabiamila said every step to address the issues raised against the loan request was met by legal blocks “in the sense that agreements have already been made and cannot be approved”.

“So, it is either we approve wholesale or not approve,” he said.

The speaker, however, added that the house was able to get the executive to agree to insert projects from the south-east and north-east into the next borrowing plan.

“For the first time, we added a clause specifying certain projects. We met and demanded for the commitment of the executive that these projects must be considered in the next borrowing plan and we got their words,” he said.

“I am only seeking for the understanding of our colleagues from the north-east and south-east. All of us will agree that there is a massive wide infrastructural deficit in this country and we need to bridge that gap.”

Buhari first sent the loan request to the previous national assembly under Bukola Saraki but it was rejected.

However, at the senate on Tuesday, the $5.5 billion loan request was approved after Clifford Ordia, chairman committee on local and foreign debts, presented a report on the floor of the upper legislative chamber.