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The House of Representatives has approved a loan request of $5.8 billion (about N2.4 Trillion) and a grant of $10 million as requested by President Muhammadu Buhari.
The lawmakers, however, asked for transparency regarding the terms and conditions given by the funding agencies in giving out the loan, saying the details should be made available to the National Assembly.
The loans are to be sourced from the World Bank, Islamic Development Bank, China Exim bank, Chinese Africa Development Fund, and International Fund for Agricultural Development.
The House Committee on Aids, Loans and Debt Management, had presented its report through the Chairman, Ahmed Safana (All Progressives Congress-Katsina).
According to Safana, the $5.8 billion to be borrowed by the Buhari government covers $2.3 billion for the Grid Modernisation and Expansion Programme, $290,000,000 for the malaria project, $700,000,000 for the Sustainable Water Supply, Sanitation and Hygiene (WASH) Project, $786,382,967 for the Gurara Phase II project among others.
He said, “That that the House do consider Final Report of the Committee on Aids, Loans and Debt Management on the Proposed 2018–2020 External Borrowing (Rolling) Plan No.3 (Laid:14/12/2021) – Committee of Supply.
“That the House do approve the under listed ongoing negotiation of external borrowing of $5,803,364,553.50 and a Grant component of $10,000,000 under the 2018-2020 External Borrowing (Rolling) plan.”
Buhari government has been criticised by many Nigerians for borrowing heavily, with a large number of citizens afraid that the country will not be able to pay back the loans.
Nairametrics had, in July 2021, published that the Nigerian Government spent N1.8 trillion on debt servicing in the first five months of the year, representing about 98 per cent of the total revenue generated in the same period.