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Senate approves Buhari’s $5.8bn 2018-2020 external borrowing request

Senate approves Buhari’s $5.8bn 2018-2020 external borrowing request

PRESS STATEMENT 

 

Senate approves Buhari’s $5.8bn 2018-2020 external borrowing request 

 

…gives nod to $10m grant component 

 

The Senate on Wednesday approved the sum of $5,803,364,553.50 USD and a grant component of N10 million USD under the 2018-2020 External Borrowing (Rolling) plan. 

 

The approval followed the consideration of a report by the Committee on Local and Foreign Debts.

 

Chairman of the Committee, Senator Clifford Ordia, in his presentation, said the $2,300,000,000 would be sourced from the World Bank, $2,300,000,000 from the German Consortium, $90,000,000 from the Islamic Development, 786,382,967 from the China Exim Bank, $276,981,586.50 from the Bank of China, and $50,000,000 from the International Fund for Agricultural Development.  

 

He recalled that President Buhari in a communication dated May 6, 2021, had requested the Senate to consider and approve the Federal Government 2018-2020 External Borrowing (Rolling) plan.

 

According to him, the 2018-2020 External Borrowing (Rolling) Plan contained a request for approval in the sum of $36,837,281,256 (Thirty Six Billion, Eight Hundred and Thirty Seven Million, Two Hundred and Eighty One Thousand Two Hundred and Fifty Six United States Dollars) plus €910,000,000 (Nine Hundred and Ten Euros) and Grant Component of $10,000,000 (Ten Million United State Dollars).

 

Ordia noted that a report was laid by his Committee before the Senate in July 2021 recommending approval of the sum of $8,575,526,537 (Eight Billion, Five Hundred and Seventy Five Million, Five Hundred and Twenty Six Thousand, Five Hundred and Thirty Seven United States Dollars) and €490,000,000 (Four Hundred and Ninety Million Euro).

 

He further recalled that the Senate at Plenary in July 2021 approved financing for projects as recommended by the Committee above whilst the Committee continued further legislative action and consideration of the outstanding request.

 

He added that on September 15, 2021, the President of the Senate read another Communication from the President 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.

 

Consequently, Ordia stated that a second report was laid by the Local and Foreign Debts Committee before the Senate in November 2021 recommending approval of the sum of $16,229,577,718 (Sixteen Billion, Two Hundred and Twenty Nine Million, Five Hundred and Seventy Seven Thousand, Seven Hundred and Eighteen usd), €1,020,000,000 (One Billion and Twenty Million euros) and a Grant component of $125,000,000 (One Hundred and Twenty Five Million usd).

 

In accordance with the recommendation of the Committee, the Senate at Plenary in November 2021 approved the sum as financing for projects as recommended by the panel.

 

He explained that the request for the approval of $5.8 billion USD was part of the mandate of the Committee in respect of the 2018-2020 External Borrowing (Rolling) plan. 

 

The Committee on Local and Foreign Debts in its observations noted the Genuine concerns of Nigerians about the level of sustainability and serviceability of Nigeria’s borrowing within the last Decade.

 

It nevertheless reiterated its stance on the need for a more proactive and broad based approach to revenue enhancement related issues, adding that, “there are noticeable improvements in the country’s revenues.”

 

The Committee underscored the need for rapid infrastructural and human capital development.

 

It noted that the projects to be financed with the loan would have great multiplier effect on stimulating economic growth through infrastructure development, job creation, poverty alleviation, health care and improvement of the nation’s security architecture.

 

Signed:

 

Dr. Ezrel Tabiowo, (DPA h.c), FAI, FIMC, CMC, FCP, Fsca

 

Special Assistant (Press)

to President of the Senate 

 

Wednesday, December 15, 2021.




PRESS STATEMENT 

 

Senate okays N633.39bn budget for NCC in 2022

 

…approves N8.8bn USPF budget

 

The Senate has approved the sum of N633,393,283,000.00 billion naira as budget for the Nigerian Communications Commission (NCC) for the 2022 fiscal year. 

 

The approval followed the consideration of a report by the Committee on Communications.

 

Chairperson of the Committee, Senator Olufemi Tinubu (APC, Lagos Central), in her presentation, said out of the approved sum, N86,242,952 was for Recurrent Expenditure; N30,336,144 for Capital Expenditure and N42,445,864 for Special Projects; N466,868,323 was transfer to Federal Government; and N7,500,000 as Transfer to Universal Service Provision Fund. 

 

She explained that Commission’s Revenue of N633.3 billion consists of the Annual Licensing Fees (N1.5 billion); Annual Operating Levy (N124 billion); Spectrum Fees Charges (N450.2 billion); Numbering Plan (N9.5 billion); Administrative Charges (N4.4 billion); Type Approval Fees (N902 million); Sanction Fees (N165 million).

 

She added that others include: Sundry Income – N5 million, FG Intervention for Broadband Infrastructure – N41.6 billion and Transfer from Reserve – N1 billion. 

 

In a related development, the Senate also on Wednesday approved the sum of N8,824,847,408 billion as 2022 budget for the Universal Service Provision Fund. 

 

Senator Tinubu, in a second presentation, said out of the sum approved, N1,923,760,092 was for Recurrent Expenditure; N357,959,020 for Capital Expenditure; and N6,543,128,296 for Projects and Programmes. 

 

Signed:

 

Dr. Ezrel Tabiowo, (DPA h.c), FAI, FIMC, CMC, FCP, Fsca

 

Special Assistant (Press)

to President of the Senate 

 

Wednesday, December 15, 2021.




PRESS STATEMENT 

 

N’Assembly budget office must be strengthened for efficiency – Lawan

 

President of the Senate, Ahmad Lawan, has said efforts must be made to strengthen the National Assembly Budget and Research Office (NABRO) to ensure efficiency in the discharge of its functions.

 

According to Lawan, such efforts include providing the needed legal backing and funding to enable the office perform its duties effectively.

 

Lawan stated this on Wednesday after a bill seeking to provide for the establishment of the National Assembly Budget and Research Office  scaled second reading during plenary. 

 

He said, “This (NABRO) is an office that already exists, because I recall in 2000 that about 22 years or so, ago, the then house reps introduced the bill seeking to establish NABRO.

 

“I’m aware that office was established by the National Assembly, but there is no law backing it.

 

“[And] this effort by Senator Sadiq Umar Suleiman is to provide the legal framework, the legal backing necessary for that institution to have the legitimacy that is necessary. 

 

“I’m also aware the office hardly does anything, not because the people are not competent enough, but because they have not been enabled.

 

“I think it behoves the National Assembly to make funds available for institutions that will make its activities more effective and efficient.

 

“Individually, we had been given five legislative aides, and the kind of funds available to us will not give us the kind of consultants that we ordinarily need as parliamentarians. 

 

“So, the NABRO office is supposed to house experts in different fields who will give us the best analysis on any issue of significance in national development that Parliament is supposed to consider. 

 

“I believe that we need to energize that office and maybe look for more competent hands to have it perform the functions it is meant to do.”

 

Sponsor of the NABRO bill 2021, Senator Sadiq Suleiman Umar (Kwara North), in his lead debate on the bill, said that a total of N1,126,529,588 billion was needed to fund recurrent and capital expenditure of the National Assembly Budget and Research Office in the first twelve months after the commencement of the Act. 

 

He explained that NABRO was an initiative of the Nigerian legislature to support its work in its engagements with Executive institutions.

 

He said giving legal backing to the office would provide the National Assembly with objective, timely and non-partisan analysis, information and estimates needed for economic and budget decisions.

 

Senator Umar added that it would, among others, provide independent, unbiased and non-partisan analysis of the executive arm of government’s annual budget estimates;

 

According to the lawmaker, NABRO would also provide independent and continuous review and monitoring of existing and proposed programmes and budgets of the Federal Government.

 

In addition to keeping track of bills, the office would provide analysis of the economic implication of the Federal budget on the private sector and the budgetary and financial implication of any proposed legislation when so required by any committee of the National Assembly.

 

It would be responsible for the preparation and presentation to the National Assembly, periodic forecast of economic trends and alternative fiscal policies with regards to the Federal Government’s Money Bills, brought before the National Assembly in a financial year, as well as provide cost estimates including the inflationary impact of any proposed legislation. 

 

The bill after consideration was referred by the Senate President, Ahmad Lawan, to the Committee on Establishment and Public Service Matters.

 

The Committee was given four weeks to report back to the chamber in plenary.  

 

Signed:

 

Dr. Ezrel Tabiowo, (DPA h.c), FAI, FIMC, CMC, FCP, Fsca

 

Special Assistant (Press)

to President of the Senate 

 

Wednesday, December 15, 2021.

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