Fresh $4bn, €710m loans: We’ll keep borrowing – APC tells Nigerians

The ruling All Progressives Congress, APC, on Thursday, has said the administration of President Muhammadu Buhari will continue borrowing money, saying that it “is for the good of the country”.

The party disclosed this while defended the borrowing of President Muhammadu Buhari, saying the borrowings under the APC-led administration were transparently utilised for the purpose they were secured for.

Newsflash Nigeria had earlier reported that President Muhammadu Buhari had sent a letter to the Nigerian Senate requesting $4 billion and €710 million external loans for approval, despite public outcry over incessant borrowing by the current administration.

This was disclosed on Tuesday, as the Senate President, Ahmed Lawan read the letter from the presidency requesting approval.

According to the president, the proposed loan would be financed through sovereign loans from the World Bank, French Development Agency, EXIM Bank and IFAD.

Buhari noted that the loan if approved would enable the Federal Government to fund critical infrastructural projects in different sectors across the country.

The letter reads: “I write on the above subject and submit the attached addendum to the proposed 2018-2020 external rolling borrowing plan for the consideration and concurrent approval of the Senate for the same to become effective.

“The distinguished Senate President may recall that we submitted a request on the 2018-2020 borrowing plan for the approval of the Senate in May 2021.

Nigeria News: ICPC tracking 23.75bn Akure –Ikere Ekiti road project, contractors set to begin

“However, in view of other emerging needs and to ensure that all critical projects approved by FEC as of June 2021 are incorporated, I hereby forward an addendum to the proposed borrowing plan.

“The projects listed in the external borrowing plan are to be financed through sovereign loans from the World Bank, French Development Agency, EXIM Bank and IFAD in the total sum of $4,054,476,863 and €710 million and grant components of $125 million.”

Last May, Mr Buhari requested a loan to finance the N5.6 trillion 2021 budget deficit, as it looks to execute crucial infrastructural projects bordering on transportation, health, education, etc.

The Senate had also in April approved $1.5 billion and €995 million external borrowings which were part of the $5.5 billion and €995 million external borrowings sought for by the president in May last year.

The president has explained that the funds were to be used to finance some government projects and assist some states financially.

According to the Nigerian Domestic and Foreign Debt Report, published this year by the National Bureau of Statistics (NBS), the country’s total public debt as of September 2020, is N32.2 trillion ($84.57 billion).

Newsflash Nigeria also reported that the Peoples Democratic Party (PDP) earlier declared that Buhari and the APC administration are selling Nigeria.

PDP National Publicity Secretary, Kola Ologbondiyan, in a statement said the party is enraged by the “further mortgage” of the country and warned the National Assembly to protect generations unborn.

He also condemned the demand for another $4billion and €710million loans by the President.

Ologbondiyan further stated that with the “reckless borrowing”, Nigerians might eventually not have a nation after the APC leaves power.

Nigeria News: Yoruba nation agitators are terrorists – Speaker Femi Gbajabiamila

Reacting, APC in a statement signed by the national secretary, Senator John James Akpanudoedehe, said the borrowings under the APC-led administration were transparently utilised for the purpose they were secured for.

Akpanudoedehe said borrowings made under the current administration were based on genuine needs and necessity to strengthen the foundation of the national economy.

”Borrowings by the President Muhammadu Buhari-led administration is for the good of the country as the money is used to develop critical infrastructure.

Unlike in the brazen looting days of the PDP, the borrowings are designed to finance the deficit in the 2021 budget to enable the realization of the Nigerian Economic Sustainability Plan.

”Nigerians should also reflect and recall that the PDP had in its 16 years of misrule pushed the country into a dark ditch of insolvency.

”However, in a welcome and commendable change, the Buhari-led administration through its economic management skills bailed out states to pay salary backlogs and embarked on large-scale infrastructure development projects that stimulated the economy and exited the era of recession caused by the PDP administration,” the statement said.

Newsflash Nigeria is an online newspaper that is developed and written exclusively for Nigerians. It’s packed with up-to-the-minute Local and National Economy News, Share & Capital Market, Health, Sports, Education, Technology, Business and Opinions.

To make further advert enquiries or place an order, please contact us at [email protected] and +2348053316946 and WhatsApp number 08033546732