By Chibuike Nwabuko
ABUJA, NIGERIA – Human rights crusader and federal lawmaker that represented Kaduna Central Senatorial District at the 8th Aseembly, Senator Shehu Sani has chided the present 10th Assembly for passing President Bola Tinubu’s N1.767trillion loan request without following wide consultations and usual legislative procedure.
Expressing his misgivings on his X account on Saturday, the Kaduna-born politician chronicled the legislative procedure for approving loan thus:
Step one: The president letter of request for loan is read in the chamber by the Senate President and the Speaker.
Step two: The letter of request is transmitted to the Committee on local and foreign debt.
Step three: The committee receives the letter, sets a date and summons the finance minister, DG budget, DG Debt management office and all heads of agencies factored in the loan.
Step four: The committee reports back to the Chamber and the report is debated.
Step five: The Senate and the House concur.The Lawmakers decides whether to approve or not to approve.
Comrade Shehu Sani wondered how all these five steps happened in 48th hours, saluted the 10th NASS for being faster than the 8th NASS.
Precise Post recalls that forty eight hours after receipt of request from President Bola Tinubu for $2.209billion , equivalent to N1.767trillion loan, the Senate Thursday, approved the loan.
President Tinubu had on Tuesday, 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 .
The 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.
The Committee report as presented by Senator Wammako recommended thus : ” That the Senate do approve the implementation of the New External Borrowing of One Trillion, Seven Hundred and SixtySeven Billion, Six Hundred and Ten Million, Three Hundred Twenty-One Thousand, Seven Hundred and Seventy-Nine Naira (41,767, 610,321,779.00) (equivalent of USD2,209,512,902.22b) at the Budget Exchange rate of USD1.00/800 in the 2024 Appropriation Act and that the amount should be raised from one or more sources.
” Namely; issuance of Eurobonds in the ICM, Issuance of debut sovereign Sukuk in the ICM, & Bridge/ syndicated loans, subject to market conditions.
“Based on availability and cost, to issue Eurobonds in the sum of USD1.70 billion or more, but not more than USD2,209,512,902,.22b, approved as New External Borrowing in the 2024 Act, among others.
