- President Muhammadu Buhari is set to borrow N2.3 trillion from multilateral and bilateral firms after receiving approval from the Senate
- Senate President, Ahmad Lawan, stated that the approval was a borrow plan and the lawmakers will ensure no frivolous spending of the loan
- The loan will increase Nigeria's debt which is around N33.1 trillion as of four months ago, and negatively impact its revenue generation
The approval for the implementation of N2.3 trillion loan has been given to President Muhammadu Buhari after Wednesday session of the Nigerian Senate.
Not a new loan request
The Senate President, Ahmad Lawan, said the loan isn't a new request as it had been demanded for in the 2021 Appropriations Act. He explained that the lawmakers were only giving resolutions on implementation.
President Buhari had made request for an external loan in a letter sent to the upper chamber in May, but the approval was only given after Senator Clifford Ordia gave a report.
Ordia, who is the Chairman of the Senate Committee on Local and Foreign Debts, stated that:
“What we are about to pass is not a new borrowing, it has been approved in the 2021 budget."
No frivolous spending
In his address to the legislature, the Senate President said the committee will prevent the usage of the loan for frivolous expenditures by the Federal Government.
Lawan said the Senate committee will serve as an oversight for judicious use of the N2.3 trillion by President Buhari's administration.
He stated that the funds will be accounted for:
"Every cent counts. Our committees must be alive to oversee it. No frivolous expenditures should be entertained."
He further explained Ordia's statement, clarifying that the approval received by President Buhari is for borrow plan loan the loan which will be received from multilateral and bilateral firms.
Every Nigerian now owes N160,000
Meanwhile, Legit.ng had previously reported that Nigeria's debt has risen to N33.1 trillion as of March 2021, according to the Debt Management of Nigeria.
It was gathered that since his administration came into power in 2015, President Buhari has borrowed over N21 trillion from creditors.
This means about N10 billion has been borrowed by President Buhari daily, and each Nigerian owes over N160,000.