- The federal government and the state governors mull another borrowing plan
- A subcommittee set up by the National Economic Council (NEC) plans to borrow N2 trillion from the Pension Fund
- The committee said the loan will be used to fix roads, rail and electricity projects
The federal government and the state governors are reportedly considering borrowing about N2 trillion from the Pension Fund to invest into roads, rail and electricity projects.
The Nation reports that the governor of Lagos state, Babajide Sanwo-Olu, his Kebbi state counterpart Atiku Bagudu and the minister of finance, budget and national planning, Zainab Ahmed, gave the indication during a press briefing after the National Economic Council (NEC)’s 100th meeting on Thursday, December 18.
Legit.ng reports that the plan is, however, subject to the approval of the NEC.
The NEC meeting was presided over by the vice president, Yemi Osinbajo, at the Council Chamber of the State House in Abuja.
Speaking further on the borrowing plan, Governor Bagudu said a sub-committee set up to consider how pension fund can be utilised for infrastructure development had identified critical development areas where the fund can be useful.
The Kebbi state governor said other countries like South Africa and Saudi Arabia borrow from their pension funds infrastructure.
Earlier, Legit.ng reported that Nigeria's Senate president cautioned against further borrowing of funds by the federal government to fund the budget.
Ahmad Lawan said many of the revenue-generating agencies are not remitting any revenue into the federation account.
Lawan, while speaking at the third University of Benin/National Institute for legislative and Democratic Studies' convocation ceremony, lamented that Nigeria has been borrowing to fund her budget.
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