Nigeria Senate has approved $16 billion and €1 billion loans request by President Muhammadu Buhari. The president said the loans will stimulate the economy and create jobs.
Another $125 million was approved as grant components of which Buhari previously requested for facilities in an addendum to the 2018-2020 borrowing plan in September.
Sources of funds for the facilitation of this loan includes the World Bank, African Development Bank, and the French Development Agency (AFD).
Senate chairman for local and foreign debt Clifford Ordia has explained that the projects for which funds are requested in the 2018-2020 borrowing plan are ongoing.
His words “Subsequently, on the 15th of September 2021, the President of the Senate of the federal republic of Nigeria read another Communication from the President and Commander in Chief of the Armed Forces, Containing an addendum to the 2018-2020 External Borrowing (Rolling) Plan in the sum of $4,054,476,863, €710,000,000 and Grant Component of $125,000,000 for various projects and same was also referred to the committee for further legislative action,” Ordia said.
“The committee notes that a good number of the projects in respect of which financing is being requested under the 2018-2020 external borrowing (rolling) plan are mostly ongoing projects and programmes in respect of which external borrowed funds have been spent in the past, including loans and grants.”
Ordia stated that projects in nigeria require additional financing and “will have a great multiplier effect on stimulating economic growth through infrastructure development, job creation, poverty alleviation, health care and improve our security architecture.”