Confusion over Buhari’s $30bn loan request

There is confusion over President Muhammadu Buhari’s $29.9bn loan request, which was rejected by the Senate on November 1, 2016.

Buhari had, in a letter to both chambers of the National Assembly, titled ‘Request for Approval of Federal Government 2016-2018 External Borrowing (Rolling) Plan, asked the legislature to approve his administration’s external borrowing plan of $29.960bn.

The loan will cover the funding of projects between 2016 and 2018.

The Senate had, on November 1, 2016, rejected the loan request, asking the executive to provide further details on it.

The budget has a huge deficit of N2.36tn (or 2.18 per cent of Gross Domestic Product), a figure the President said would be financed through borrowing.

But on Sunday, there was confusion on the status of the loan request and whether the executive had provided the details as requested by the Senate.

The Federal Ministry of Finance and the Debt Management Office engaged in passing of buck over who should provide the details to the National Assembly.

Punch, January 16, 2017

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