Senate President Talks Tough Against Frivolous Spending as Lawmakers Approve N2.3trillion Loan

Senate President Talks Tough Against Frivolous Spending as Lawmakers Approve N2.3trillion Loan

  • 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

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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.

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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.

Senate President, Ahmad Lawan, has warned against frivolous spending after approval of N2.3 trillion loan for President Muhammadu Buhari
Nigerian Senate President, Ahmad Lawan. Photo: Ahmad Ibrahim Lawan
Source: Facebook

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.

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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.

Source: Legit.ng

Authors:
Khadijah Thabit avatar

Khadijah Thabit (Copyeditor) Khadijah Thabit is an editor with over 3 years of experience editing and managing contents such as articles, blogs, newsletters and social leads. She has a BA in English and Literary Studies from the University of Ibadan, Nigeria. Khadijah joined Legit.ng in September 2020 as a copyeditor and proofreader for the Human Interest, Current Affairs, Business, Sports and PR desks. As a grammar police, she develops her skills by reading novels and dictionaries. Email: khadeeejathabit@gmail.com

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