The Nigerian Senate has given the green light to President Bola Tinubu’s request for the 2022-2024 external borrowing rolling plan, amounting to 7.4 billion dollars and 100 million euros. The approval came after the adoption of the report of the Senate Committee on Local and Foreign Debt during a plenary session.
Presenting the report, Haruna Manu, the vice chairman of the committee, acknowledged the genuine and significant concerns of Nigerians regarding the level and sustainability of the nation’s borrowing activities over the past decade. He highlighted that debt service figures represent a substantial drain on the nation’s revenue, accounting for over 30 percent of its annual budget expenditure.
Manu emphasized that Nigeria’s annual revenue shortfall in relation to its need for rapid infrastructural and human capital development has led the National Assembly to pass deficit budgets, necessitating borrowing to finance the deficits. The proposed borrowing, to be sourced from various financial institutions, is intended for projects in the Ministries of Education, Agriculture, and Women Affairs, most of which are ongoing and have previously utilized external borrowed funds.
Moreover, the projects aim to stimulate economic growth through infrastructure development, job creation, poverty alleviation, and the stimulation of commercial and engineering activities. The World Bank has also expressed willingness to provide funds to enhance electricity supply reliability, achieve financial and fiscal sustainability, and improve accountability, thereby enabling the utilization of grid-connected capacity to deliver more power.
Furthermore, the projects seek to improve states’ land administration, business-enabling environment, and public-private partnerships, fostering economic growth and increasing tax revenues.
Additionally, the Senate expediently approved the securitization of the balance of N7.3 trillion ways and means revenue in the Consolidated Revenue Fund (CRF) of Nigeria, following President Bola Tinubu’s request in a letter addressed to Senate President Godswill Akpabio.
The Senate also confirmed the appointment of Executive Commissioners for the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) following the adoption of the report of the Senate Joint Committee on Petroleum Upstream on the screening of the nominees. The confirmed appointees are Bashir Indabawa (North-West), Kelechi Ofoegbu (South-East), Enorense Amadasu (South-South), and Babajide Fasina (South-West), serving as executive commissioners in various capacities.
The Senate consequently adjourned plenary until January 23.
This development, which signifies a significant milestone in Nigeria’s economic and infrastructural advancement, reflects the government’s commitment to driving sustainable growth and development for the nation.
