Senate Approves President Tinubu’s Borrowing Plan Amidst Concerns Over Nigeria’s Debt
The Senate has given its approval to President Bola Tinubu’s request for the 2022-2024 external borrowing rolling plan, which includes a sum of $7.4 billion and 100 million euros. This decision follows the adoption of the report presented by the Senate Committee on Local and Foreign Debt during a plenary session.
Haruna Manu, the Vice Chairman of the Committee, highlighted the concerns raised by Nigerians regarding the nation’s borrowing activities, emphasizing the need to address the sustainability and serviceability of the country’s debt. He noted that debt service figures currently account for over 30 per cent of the nation’s annual expenditure, posing a significant challenge to its financial stability.
Manu explained that due to the shortfall in annual revenue compared to the requirements for infrastructure and human capital development, the National Assembly has had to approve deficit budgets, necessitating borrowing to finance the deficits.
The borrowing request is intended to be sourced from various financial institutions and is earmarked for ongoing projects and programmes in the Ministries of Education, Agriculture, and Women Affairs. These projects aim to stimulate economic growth through infrastructure development, job creation, poverty alleviation, and the promotion of commercial and engineering activities.
Additionally, the Senate approved the securitisation of the balance of N7.3 trillion ways and Means revenue in the Consolidated Revenue Fund (CRF) of Nigeria, following President Tinubu’s request. This decision was made during the consideration of the President’s letter at the plenary session.
Furthermore, the Senate confirmed the appointment of Executive Commissioners for the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) after reviewing the report of the Senate Joint Committee on Petroleum Upstream on the screening of the nominees. The confirmed commissioners include Bashir Indabawa, Kelechi Ofoegbu, Enorense Amadasu, and Babajide Fasina.
The Senate adjourned plenary until 23 January after concluding its deliberations on these matters.
Source: Premium Times
