Nigeria Senate on Wednesday approved $16 billion and €1 billion loans request by President Muhammadu Buhari.
The Senate also approved grant components of $125 million – which Buhari had requested the facilities in an addendum to the 2018-2020 borrowing plan in September.
The World Bank, African Development Bank, and the French Development Agency (AFD) are among the funding agencies.
Buhari had said the loans would stimulate the economy and create jobs.
Clifford Ordia, chairman of the Senate committee on local and foreign debts, said the projects for which funds are requested in the 2018-2020 borrowing plan are ongoing.
Ordia said projects will result in a rebirth of commercial and engineering activities and the consequent tax revenues payable to Government as a result of these productive activities will increase.
“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.”
The Senator said the committee found as a fact that out of a sum of over $22.8billion approved by the National Assembly under the 2016-2018 external borrowing rolling plan, only $2.8billion, that is 10% has been disbursed to Nigeria.
Ordia said the projects 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.”