….As NASS Approves President Tinubu’s N1.77trn Loan Request
By Chibuike Nwabuko
ABUJA FCT – Presidential candidate of the Peoples Democratic Party (PDP) in the February 25, 2024 general election, Atiku Abubakar has reacted to the report of Nigeria being the third most indebted country to the International Development Association (IDA), describing it as very concerning.
This is coming as the Senate on Thursday approved President Bola Tinubu’s N1.77trn loan request.
Atiku stated this in a statement released on his X account on Thursday. The statement reads in full:
“The recent report released by the World Bank, showing Nigeria as the third most indebted country to the International Development Association (IDA), is very concerning.
“This report is coming just when the government has already sent a proposal to the National Assembly signalling an intention to borrow an additional N1.7tn being shortfall in the 2024 budget through Euro Bonds.
“What makes this particular loan proposal even more concerning is that it is benchmarked at the exchange rate of 1 USD to N800, whereas the current exchange rate from the Central Bank of Nigeria stands at over N1,600 to 1 USD.
“Nigeria is sinking further into debt, and the National Assembly has become an accomplice once more. In July this year, Tinubu boasted that the @FIRSNigeria and @CustomsNG under his watch had collected all-time high revenues to finance the Budget. Why are they still borrowing? There is something that they are not telling Nigerians, even as they are being crushed by a combination of their failed trial-and-error policies and loan rackets.
“These @officialABAT’s loans are bone-crushing to Nigerians and bringing insufferable pressure on the economy, especially when they are not properly negotiated and utilized.
“It is concerning that the voracious appetite for these humongous loans is powered by corruption and not for infrastructure and development needs. A report by Budgit, a budget watchdog, has disclosed that the 2024 Budget is a mess because of the level of pork associated with it.
“I feel a sense of personal agony seeing that just a few years after the administration of President Obasanjo took our country out of foreign indebtedness, we are today back at the top spot in the same conundrum
“It is time to apply more caution and arithmetic to the loan frenzy. -AA
Precise Post recalls that President Tinubu had on Tuesday this week in separate letters to both chambers of the National Assembly , requested for approval of N1.767trillion loan for part funding of N9.7trillion deficit in the N28.7trillion 2024 budget .
Senate upon receipt of the request , mandated its committee on Local and foreign debts to expeditiously work on it and report back within 24 hours .
Accordingly , the Chairman of the committe , Senator Aliyu Wammako ( APC Sokoto North ) , during plenary, presented reports on the presidential request for approval.
Senator Wammako in the report , titled ” Implementation of New External Borrowing of N1, 767, 610, 321, 779.00 equivalent to $ 2.209billion in the 2024 Appropriation Act through the issuance of Eurobonds and other sources , said the presidential request was very necessary for approval .
According to him, the requested loan , is planned for execution of ongoing projects and programmed in the 2024 Appropriation Act which are critical for growth and development.
” It will contribute to the implementation of the Debt Management Strategy which seeks to reduce the cost of borrowing , lengthen the maturity of the public debt stock , free – up space in the domestic market for other borrowers and help increase Nigeria’s External Reserves .”, he explained .
He added that Nigeria could raise all or part of the New External Borrowing of $2.21billion through the issuance of Eurobonds in the International Capital Market ( ICM) .
That the issuance is for the part – financing of budget deficit.
