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Senators Caution President Jonathan’s N1.23 trillion Debt Binge

By on November 8, 2012

President Goodluck Jonathan’s plan to borrow externally to the tune of $7.905 billion (about N1.23 trillion) hit the rocks, as the move was criticized by the Senate.

 

The lawmakers argued that there was no rationale behind such big loan, some said it was a death trap for Nigeria as well as the future growth of the country. Some senators opined that the money might not be channeled into the said projects.

 

They however warned that if the loan will be approved eventually, all projects intended for will be carried out and monitored to the letter.

 

The matter was referred to the Senate Committees on Finance, Local, and Foreign Debts to report back in the next one week for consideration.

 

Some time back, President Jonathan had sent the 2012-2014 Medium Terms to the Senate since February 14, 2012 for approval for the financing of pipeline projects, youth employment, and power infrastructure in the country.

 

Senate Leader, Victor Ndoma-Egba who led the debate explained that the projects were special ideas meant to help grow the economy and bring it back to where it ought to be.

 

He stressed that the initiative would also help transform the fortunes of Nigerians by the implementation of government’s transformation agenda.

 

According to Him, “the pipeline projects are at various stages of finalization and a total external pipeline borrowing in the amount of US$7,905,960,000 or US$2.4 billion a year being cumulative facilities offered are as follows for the completion of the pipeline projects: World Bank, $2.975 billion; African Development Bank, $731.23 million; Islamic Development Bank, $672.85 million; French Development Agency, $56.61 million and EXIM Bank of China, $3 billion.”

 

 

Senators react

 

Contributing, Senator Benedict Ayade (PDP, Cross River North) stressed that there was no need for the borrowing when the country could source for the funds internally and execute its projects said, “We should not go borrowing because when we do that we lose the value of the Naira, and we lose our own values. There is no reason why we should go and borrow from countries that are not as rich as Nigeria.”

 

Senator Ahmed Lawan (ANPP, Yobe North) in the same direction said there was no need for borrowing, cautioning that nothing serious had come from the previous borrowings.

 

Senator Joshua Dariye (Plateau Central) warned that the loans could truly be a “death trap” for the future of Nigerians, he called for further scrutiny of the items raised.

One Comment

  1. Nura

    November 8, 2012 at 9:50 am

    Pls caution him again