Buhari and Saraki reach compromise on re-submission of $30bn loan request to senate

PRESIDENT Muhammadu Buhari and senate president Senator Bukola Saraki have struck a deal that will enable the executive re-submit its proposals to obtain a $30bn loan to the National Assembly.

 

Last week, President Buhari had asked the National Assembly to  approve his plan to borrow $30bn from external financiers to execute key infrastructural projects across the country between 2016 and 2018. Under an ambitious plan to develop Nigeria's infrastructure during his presidency, President Buhari intended to approach international lenders for a sum of $29.96bn.

 

However, senators rejected the bid after majority leader Senator Ali Ndume, moved the motion that the request be subjected to a debate and Senator Saraki, put the motion to a voice vote twice. Following the rejection, ministries of finance and budget & national planning as well as the Debt Management Office (DMO) immediately met to work on the details with a view to going back to the senate with a more detailed document.

 

It now appears that the executive and legislative arms of government have reached a compromise after President Buhari and Senator Saraki met three times on the issue over the last few days. Senator Saraki has already admitted that the loan request may be re-presented by the executive and the senate may refer the request to its committee on local and foreign debts, headed by Senator Shehu Sani.

 

One source privy to the meetings said: "Following consultations, the president and the senate president have agreed that the request for the $29.9bn loan be presented again to the senate. All things being equal, the fresh request might be forwarded with all the details as demanded by the Senate.

 

“However, the Senate Committee on Local and Foreign Debts, which is headed by Senator Sani will still go through the request and vet the desirability or otherwise of the loan. The recommendations of the committee will determine the final decision of the Senate on the loan.”

 

President Buhari has said the external borrowing plan would be used for infrastructure, agriculture, health, education, water supply, growth and employment generation, poverty reduction through social safety net programmes and governance and financial management reforms etc. However, senators felt the original request was not detailed enough and lacked information on key components.