Two months after President Muhammadu Buhari requested Senate approval for a N2.3 trillion loan, the lawmakers have given him a go-ahead to obtain the debt.
President Buhari had written to the Senate in May as he sought to fund the 2021 Appropriations Act with the credit which will be sourced from multilateral and bilateral firms.
The approval was given after Senator Clifford Ordia, the Chairman of the Senate Committee on Local and Foreign Debts, presented a report to the upper chamber.
It was gathered that the Senate had approved N4.6 trillion in the 2021 Appropriation Act, while stating that the N2.3 trillion will partly finance the 2021 budget deficit.
According to Senator Ordia, the approved loan of N2.3 trillion is not new as it was earmarked in the 2021 budget, “What we are about to pass is not a new borrowing, it has been approved in the 2021 budget,” he said.
Commenting on the approval, Senate President, Ahmed Lawan, said the committee will oversee the usage of the loan and ensure it is not disbursed for frivolous expenditures.
While buttressing the statement of Ordia, Lawan said the update was a resolution given for implementation of the loan.
By Fakoyejo Ayodeji
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
If you are motivated and passionate about building a global society, founded on justice, equity, fairness, transparency, accountability and superior knowledge, kindly consider donating to Ripples Nigeria’s solutions journalism.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
INVESTIGATION: Inside UNILAG’s multi-million naira budgetary abuse and academic discord
The University of Lagos located in Nigeria’s commercial capital, Lagos, has been embroiled in controversies with allegations bothering on misappropriation of...
SPECIAL REPORT: Displaced residents of Zamfara battle hunger, as underfunding derails Nigeria’s nutrition goals
On paper, Muhammad Zayyanu is seven years old. The quiet boy who looks shorter for his age could not recollect...
INVESTIGATION: N7.3bn paid for unnamed projects; how Nigerian govt spent N2.2trn in six months
Analysing nearly 3,000 payments made by various Federal Government Ministries, Departments and Agencies (MDAs) over the previous six months (January...
INVESTIGATION… Delay rocks Nigerian govt’s promise of N30,000 covid-19 relief for artisans, others
Before the outbreak of the COVID-19 pandemic in February, 2020, Chukwudi Okoroigwe’s daily earnings as a bus driver was hardly enough to cater to the...
INVESTIGATION… Ten years after, communities count losses as AfDB, Cross River govt abandon road project
Ten years after the Cross River State government and African Development Bank (AFDB) jointly awarded the Yahe-Wanokom-Wanikade-Benue border road for...