Senate approves Tinubu’s request to borrow $7.4 billion, 100 million Euros

A The Senate has approved President Bola Tinubu’s request on the 2022-2024 external borrowing rolling plan of $7.4 billion and 100 million euros, while this followed the adoption of the report of the Senate Committee on Local and Foreign Debt at plenary.

Penpushing reports that Senate committee explained that it noted with utmost importance, the genuine and grave concerns of Nigerians about the level, sustainability, and serviceability of the nation’s borrowing activities in the last decade.

The Vice Chairman of the Committee Senator, Haruna Manu presenting the report said  the debt service figures constitute a huge drain on the nation’s revenue to the extent that it accounts for over 30 per cent of its expenditure in the annual budget.

Penpushing further reports that Manu stated that due to the shortfall in the nation’s annual revenue in relation to its need for rapid infrastructural and human capital development, the National Assembly had to pass a deficit budget every year.

The Senator added that it required borrowing to finance the deficit in the budget, emphasizing that  the borrowing request seeking approval of the National Assembly was proposed to be borrowed from various financial institutions.

Penpushing also reports that he said, the proposed projects in the Ministries of Education, Agriculture and Women Affairs were mostly ongoing projects and programmes on which externally borrowed funds have been spent in the past, including loans.

The Vice Chairman of the Committee said the projects have a great multiplier effect on stimulating economic growth through infrastructure development, job creation and poverty alleviation, and stimulation of commercial and engineering activities.

Penpushing reports that Manu who is a Senator representing Taraba State said the projects also have consequent tax revenues payable to the government as a result of the productive activities,adding that 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, enhance accountability and also ensure that all existing grid-connected capacity is utilised to deliver more power.

The federal lawmaker emphasized that the projects also aim to improve states’ land administration, business-enabling environment and public-private partnerships, while in similar vein, the Senate gave expeditious approval for the securitisation of the balance of N7.3 trillion ways and Means revenue in the Consolidated Revenue Fund (CRF) of Nigeria.

Penpushing further reports that the approval followed the consideration of President Bola Tinubu’s request in a letter addressed to the President of the Senate, Senator Godswill Akpabio, and read at plenary.

The Senate in similar development confirmed the appointment of Executive Commissioners for the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), while this followed the adoption of the report of the Senate Joint Committee on Petroleum Upstream on the screening of the nominees.

Penpushing also reports those confirmed by the Senate were Bashir Indabawa, North-West, Executive commissioner, exploration and acreage management, Kelechi Ofoegbu, South-East, Executive Commissioner, Corporate Services and Administration.

The Senate which thereafter adjourned plenary until 23 January, 2024 in same vein confirmed Enorense Amadasu, South-South, Executive Commissioner, Development and Production and Babajide Fasina, South-West, Executive Commissioner, Economic Regulation and Strategic Planning.

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