Senate President Justifies President Buhari’s Fresh Foreign Loan Request

Senate President Justifies President Buhari’s Fresh Foreign Loan Request

  • 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

Abuja - A report by Nigerian Tribune indicates that Senate president Ahmad Lawan, justified the Nigeria' rising external debt profile under the President Muhammadu Buhari-led administration.

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).

President of the Senate, Ahmad Lawan
Senator Ahmad Lawan justifies President Buhari’s plan to obtain $4.054bn and €710m ($839m) loans. Photo credit: Nigerian Senate
Source: Facebook

While dismissing comments by lawmakers over the wave of borrowing, Lawan maintained that nothing could be done to halt the rising external debt profile.

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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

Recall that President Buhari sought the approval of the Nigerian Senate for a fresh loan of $4,054,476,863.00, €710 million and a grant of $125 million.

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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

Meanwhile, each Nigerian is a debtor, owing over N160,000 due to the amount of loan borrowed by President Buhari since he came into power after the presidential election in 2015.

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.


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