- The Senate has justified President Muhammadu Buhari’s plan to obtain foreign loans despite concerns over Nigeria's rising debt profile
- According to the president of the Senate, nothing could be done to stop the country's rising external debt profile
- Senator Ahmad Lawan also blamed past administrations for lack of foresight to provide for the rainy day
Senator Lawan made the remark on Wednesday, September 22, after the presentation of the Senate Joint Committee on the 2022-2024 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
While dismissing comments by lawmakers over the wave of borrowing, Lawan maintained that nothing could be done to halt the rising external debt profile.
He went on to blamed past administrations for lack of foresight to provide for the rainy day, adding that Nigeria's options are limited.
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Though he admitted that the country needs to reduce borrowing, the Senate president said the Committee of Finance is doing enough to ensure that revenue is increased for the country by government owned enterprises.
This development is coming a day after Lawan referred the president's formal request to the committee on foreign and local debts, The Punch added.
The head of the Senate on Tuesday, September 21, asked the committee, led by Senator Clifford Ordia, to work on Buhari’s request and submit its report in one week.
Buhari seeks Senate’s approval for fresh loan of $4bn, €710m
The president in a letter to the Senate president, Ahmad Lawan, explained that the loan sought is to finance critical projects in the 2021 budget.
The president’s request was read by Lawan, during plenary after the resumption of the upper legislative chamber from its annual vacation on Tuesday, September 14.
Buhari borrows over N10 billion daily in the last six years
President Buhari has borrowed N21 trillion since July 2015, increasing Nigeria's debt to N33.1 trillion as of March 2021, according to data from the Debt Management Office (DMO).
A breakdown of the debt linked to President Buhari's administration showed that on a daily basis, the country secures over N10 billion within the last six years.