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House of Reps, Senate divided over President Buhari’s N2.3tn loan

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2020 budget to be passed on November 28

The House of Representatives and Senate have disagreed over the approval of another loan for President Muhammadu Buhari’s administration.

President Buhari had sought approval for the N2.34 trillion loan implementation. Ripples Nigeria reported that the Senate gave its approval on Wednesday.

According to Senate President, Ahmad Lawan, the Upper Chamber’s committee will oversee the usage of the funds and prevent frivolous spending.

However, the House of Reps turned down the report submitted by its Committee on Aids, Loans and Debt Management for the consideration of the loan which would have been secured through international capital market with Eurobond issuance.

National Assembly divided amid Nigeria’s debt problem

The refusal of the House to give favourable resolution to the N2.3 trillion loan as done by the Senate comes at a period the country’s debt stock rose to N33.1 trillion.

Read also: South-West governors, National Assembly members to meet on PIB, Electoral Act Bill Tuesday

Over N12.47 trillion was attributed to external debt as at March 31, while domestic debt was put at N20.64 trillion – this excludes the N2.3 trillion loan.

Between January to May, the Nigerian government used N1.3 trillion to pay workers salaries and service matured debts. It was gathered that the government’s personnel and debt expenditures are well above overall revenue.

Personnel and debt expenditures stands at N3.15 trillion, settling above the N1.84 trillion overall revenue, according to analysis of the 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) released by the Budget Office.

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