Senate approves $8.3bn, €490m loans requested by Buhari

The senate has approved $8.3 billion and €490 million loans requested by President Muhammadu Buhari.

The request of Buhari was approved after Clifford Ordia, chairman of the committee on local and foreign debts, presented a report during the plenary session on Thursday.

The loans are provided for under the 2018-2020 external borrowing plan of the federal government.

The president made this request in May alongside the $6 billion loan that has been approved by the senate.

The loan will be drawn from a number of financial institutions including the World Bank, the African Development Bank (AfDB), French Development Agency (AFD), Islamic Development Bank; China EXIMBank, China Development Bank and European Investment Bank among others.

Buhari had said the projects that would be financed with these loans are located in the six geo-political zones of the country.

“The listed projects form part of the 2018-2020 External Borrowing Plan covered both the Federal and States Governments’ Projects and are geared towards the realization of the Nigerian Economic Sustainability Plan that cut across key sectors such as Infrastructure, Health, Agriculture and Food Security, Energy, Education and Human Capital Development and COVID 19 Response efforts,” the president said in a letter.

“A summary of some key projects in each of the six geo-political zones and a summary on the expected impacts on the socio economic development of each of the six geo-political zones.

“Given the importance attached, to the timely delivery of the projects listed in the proposed Borrowing Plan and the benefits both the Federal and States Governments stand to gain from the implementation of same, I hereby wish to request for the kind consideration and concurrent approval of the Senate for the 2018-2020 Federal Government External Borrowing (Rolling) Plan to enable the projects become effective.”