The House of Representatives approved the Federal Government’s request to borrow $973,474,971.38 from China Development Bank, extending the implementation of the 2022 budget to June. This approval followed the China‑Exim Bank’s rejection of Nigeria’s earlier $22,798,446,773 loan request, which had been approved by the National Assembly.
Chairman of the House Committee on Rules and Business, Abubakar Fulata, moved a motion to amend the resolution that had granted approval for the failed loan. Titled “Rescission of the 2016–2018 Federal Government External Borrowing (Rolling) Plan,” the motion noted that the plan had been approved by the Senate on 5 March 2020 and by the House on 2 June 2020. Fulata recalled that the National Assembly had approved the $22.8 billion only under the 2016–2018 Medium‑Term External Borrowing (Rolling) plan. He explained that the Federal Ministry of Finance had sought modifications to the financing proposal for the Nigerian Railway Modernisation Project (Kaduna–Kano segment) because China Exim Bank withdrew its support due to the COVID‑19 pandemic. Consequently, the contractor, CCECC Nigeria Limited, together with the Federal Ministry of Transportation, engaged China Development Bank as the new financier for $973,474,971.38. Fulata prayed that the House rescind its decision on the original financier and approve the change to China Development Bank. The motion was unanimously adopted.
The House also approved the terms of the harmonised term sheet: segment – Kaduna–Zaria–Kano; financier – China Development Bank; loan type – commercial loan; maturity – 15 years; currency – euro; interest rate – 2.7 % + 6‑month Euribor; commitment fee – 0.4 %; upfront fee – 0.5 %.
Nicholas Ossai, Chairman of the House Committee on Treaties, Protocols and Agreements, commented that the Executive had failed to present details of Nigeria’s commercial agreements with other countries to the National Assembly. He argued that changing the financier from China Exim Bank to China Development Bank introduced a new agreement, and members should see those agreements before approving the loan. Ossai urged Finance Minister Zainab Ahmed to bring the China Development Bank agreements to the Assembly for scrutiny and suggested the motion be withdrawn until the documents were provided.
Speaker Femi Gbajabiamila countered that substantive committees, particularly the Committee on Transport, had already examined the details. Ossai maintained that the loan constituted an international commercial agreement, falling under his committee’s jurisdiction, and said he had written to the Chairman of the Committee on Aids and Loans and to the Minister of Finance on the matter. Gbajabiamila asked the chairmen of the Transport and Aids and Loans committees to meet him after the session, then put the motion to a voice vote, which was overwhelmingly adopted.
The House has remained silent on allegations that an investigation into commercial agreements and external borrowings—led by Ossai’s committee—was abandoned. The probe, which began in 2020, had warned of “dangerous” clauses, but the committee has not yet released its report.
In the Senate, lawmakers also approved an extension of the capital component of the 2022 Appropriation Act from 31 March to 30 June 2023. The Executive had previously requested an extension of the Federal Government budget’s lifespan from 31 December 2022 to 31 March 2023, which the National Assembly approved in December 2022. Senate Leader Gobir Ibrahim (Sokoto East) led the debate, urging an amendment to the 2022 Appropriation Act. The Senate relaxed its standing rules to allow accelerated consideration, permitting the Bill to be read three times before passage. The chamber then formed a “Committee of Supply” to review the report and ultimately approved the extension of the 2022 budget’s life to 30 June 2023.
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