The Nigerian Senate spokesperson, Ajibola Basiru, has confirmed that President Muhammadu Buhari’s request for a loan of $800 million from the World Bank to finance the National Safety Net Programme will be meticulously scrutinised by the senate. Speaking on Channels Television on Sunday, Mr Basiru stated that the relevant committees of the Senate will assess the loan request based on the debt sustainability requirement outlined under the Fiscal Debt Responsibility Act. He also added that necessary consultations with the executive will be made, and a thorough examination of the rationale behind the request will be conducted.
The President’s request, made just weeks before the end of his tenure, has sparked controversy among the Nigerian populace. Many citizens question the President’s decision to acquire such a loan, given the country’s growing debt profile, which the administration has increased drastically in recent years. Defenders of the President argue that the loan is designed to support Nigerians who are most likely to be affected by the imminent removal of petrol subsidy. According to President Buhari, the loan will be disbursed to beneficiaries via their bank accounts.
The Senate spokesperson declined to say whether the loan would be approved or declined. Instead, he acknowledged that the Senate would give the request the same meticulous attention given to all such requests made before it.
Since gaining power in 2015, President Buhari’s administration has been accused of borrowing excessively from both local and foreign creditors, leaving the country with a debt profile estimated to be N32 trillion.
