[ 2016-10-26 ]

Buhari seeks NASS approval for $30bn loan
President Muhammadu Buhari, yesterday, sought the
approval of the National Assembly for external
borrowing plan of $29.960 billion to execute key
infrastructure projects across the country between
2016 and 2018.
The President, in separate letters to Senate
President, Bukola Saraki, and Speaker, House of
Representatives, Yakubu Dogara, also requested for
approval to vire N180 billion of the N500 billion
appropriated for Special Intervention Programme as
in 2016 budget, to enable the government finance
other key projects.

Appropriated for Special Intervention (Recurrent)
and Special Intervention (Capital) for the funding
of critical recurrent and capital items and
Request for Approval of Federal Government 2016
– 2018 External Borrowing (Rolling) Plan, were
read on the floors of both chambers yesterday.

According to him, "The total cost of the projects
and programmes under the borrowing (rolling) plan
is $29.960 billion, made up of proposed projects
and programmes loan of $11.274 billion, Special
National Infrastructure projects $10.686 billion,
Euro bonds of $4.5 billion and Federal Government
budget support of $3.5 billion."

The President, who also explained that the loan
was very necessary, in view of the serious
infrastructure deficit in the country, said:
“Considering the huge infrastructure deficit
currently being experienced in the country and the
enormous financial resources required to fill the
gap, in the face of dwindling resources and the
inability of our annual budgetary provisions to
bridge the deficit, it has become necessary to
resort to prudent external borrowing to bridge the
financing gap, which will largely be applied to
key infrastructure projects, namely power, railway
and road projects, among others.”

He said the N180 billion virement would be moved
from monies already appropriated for special
intervention programmes, both recurrent and
capital, for funding of critical recurrent and
capital items.

The President added that the request came up
because of shortfalls in provisions for personnel
costs; inadequate provision, ab initio, for some
items like the amnesty programme; continuing
requirements to sustain the war against
insurgency; and depreciation of the Naira.

The projects to be financed with the N180.839
billion include the Amnesty programme, National
Youth Serve Corps, NYSC, and the Public Service
Wage Adjustment, PSWA. President Buhari explained
that external borrowing plan would be targeted at
projects which cut across all sectors, with
special emphasis on infrastructure, agriculture,
health, education , water supply, among others.

Source - Graphiconline

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