Buhari/Saraki row stalls World Bank loan

A World Bank loan sought by Edo state has been stalled by the unending row between President Muhammadu Buhari and Senate President Bukola Saraki.

The development loan — which is in the finals stage of approval — requires a country guarantee that, by the country’s laws, must be approved by the senate before it can be granted by the World Bank.

The president will write to the senate to get approval, and the letter will be read on the floor and subjected to a motion before it can be get parliamentary go-ahead.

However, Buhari — who is still unhappy with the emergence of Saraki as senate president and has kept him at arm’s length — did not write the letter to the senate.

Instead, the letter was written by Danladi Kifasi, the head of service, and addressed to the senate president, but the senate wrote back to Kifasi pointing out the procedural error — which can be challenged in court.

TheCable understands that Kifasi, who deals with civil service matters, does not have any role to play in securing a country guarantee for a foreign loan.

Buhari’s failure to write the letter was initially seen as part of a suspected decision to isolate Saraki and force him to leave his position.

However, the president recently wrote to the senate seeking the screening of the newly appointed service chiefs in what may be a signal that he has finally acknowledged that he needs to deal directly with the senate president for now, even if against his wish.

But TheCable learnt that Buhari is yet to write directly to the senate on the proposed Edo loan.

The $70 million facility will be repayable under the International Development Association (IDA) terms which are concessionary and spread over at least 20 years.