President Muhammadu Buhari has asked the Senate to approve his request to secure a fresh loan of N850 billion to fund some projects in the 2020 budget.
He made the request in a letter read by the Senate President, Ahmad Lawan, on Tuesday on the floor of the upper chamber of the National Assembly in Abuja.
According to the letter, President Buhari seeks to raise the loan from the domestic capital market to ensure adequate funds to finance projects in the budget.
After the letter was read, the lawmakers gave accelerated approval to the President’s request to raise the loan.
But the Peoples Democratic Party (PDP) has expressed concerns over the hasty approval despite allegations of financial recklessness and lack of accountability that have dogged the administration.
The party expressed further concern that the administration had failed to articulate tangible wealth creation programmes to buoy our economy, despite the huge natural and human resources at its disposal, but relishes only in accumulating loans, without precise repayment plans, thereby pawning the economy as well as the future of our nation.
The opposition claims Nigerians are alarmed that the Buhari administration’s over dependence on loans is wrecking the economy while amassing huge problems for future generation.
The PDP holds that instead of constantly resorting to borrowing, the Federal Government should articulate innovative ways to create wealth and plug wastes.
“What is expected at a time like this is for the Buhari Presidency to immediately cut on luxury, slash the number of Presidential appointees, cut down huge allowances that gulp billions of naira and maintain a lean budget that will center on health, research and growth of our economy among other critical needs.
“The PDP therefore charges the Senate Presiding officers to note that in approving this loan, the nation holds them responsible to ensure strict oversight monitoring of the handling of the money.
“This is especially as it is being sourced from the capital market, which hosts investments by private individuals and firms.
“The Senate must ensure judicious use of the funds as well as prompt repayment. This is because our nation cannot afford any default, as such is capable of crippling the capital market and worsening the economic hardship already being faced by Nigerians.
“The PDP therefore urges all stakeholders, particularly fiscal transparency groups, the Nigeria Corporate World and management of the capital market to protect Nigerians by closely monitoring the performance of the loan to guarantee effective management and prompt repayment,” the party adds in a statement.
Meanwhile, Senators asked the Senate Committees on Finance and Appropriation to liaise with the Minister of Finance, Budget, and National Planning, Zainab Ahmed, to get more details on the loan request.
President of the Senate, Senator Lawan, assured Nigerians that the country will overcome economic challenges facing the nation as a result of dwindling revenue from crude oil sale.
In a speech delivered to welcome lawmakers back from a five-week recess, Lawan said the decision of the upper chamber to reconvene from recess was “to enable us (Senate) to sustain work on solutions and to ensure that the health crisis does not create further problems that might be much more difficult to deal with.”
He expressed concern that “the pandemic has affected our budget for this year, not just because of falling oil prices, but also because it has forced a reduction in economic activities, leading to an enormous loss of revenue.
He stated that the National Assembly had a series of engagement with the executive arm of government on areas of adjustments for a more realistic implementation of the 2020 budget.
“We are confident that we shall soon overcome this crisis, like previous health emergencies. All hands will however have to be on deck to register a quicker and more resounding success,” the Senate President assured.
Earlier, Lawan lamented the effect of the pandemic which according to him, had killed thousands of citizens across the world.
“We have also lost many of our dear compatriots. One of them is the Chief of Staff to the President of the Federal Republic of Nigeria, Mallam Abba Kyari. We condole with President Mohammadu Buhari (GCFR) on this painful loss, just as we mourn other citizens who have died because of the disease,” he said.
The Senate President called on lawmakers to educate their constituents on the importance of social distancing, personal hygiene, and the need to avoid large gatherings.
“Citizens need to comply with measures like use of facial mask and reduction in movements until the virus is gone,” he stressed.
“It is also important we educate them on the guidelines and protocols of the National Centre for Disease Control (NCDC) on reporting suspected cases.
“The task before us is imperative and the responsibility of the legislator is even more important because of our closeness to the people,” the Senate President added.
Additional reports by Channels Television