Tinubu’s $7.4bn Borrowing Plan Sails Through Senate Despite Debt Concerns

The Senate has approved President Bola Tinubu’s request regarding the 2022-2024 external borrowing rolling plan, totalling $7.4 billion and €100 million.

This decision followed the adoption of the report from the Senate Committee on Local and Foreign Debt during the plenary session on Saturday.

Presenting the report, Sen. Haruna Manu, the Vice Chairman of the Committee, said the committee acknowledged Nigerians’ significant concerns about the country’s borrowing levels and the sustainability of its debt service.

Manu said that debt service constitutes a substantial portion of the nation’s revenue, accounting for over 30% of its annual budget expenditure. He noted the necessity of passing deficit budgets annually due to revenue shortfalls, compelling borrowing to bridge these budgetary gaps.

The borrowing request, as proposed, seeks approval to obtain funds from various financial institutions. The earmarked projects primarily lie within the Ministries of Education, Agriculture, and Women’s Affairs, mostly comprising ongoing programmes and projects.

These projects are expected to yield significant multiplier effects by stimulating economic growth through infrastructure development, job creation, and poverty alleviation, fostering commercial and engineering activities, and generating tax revenues for the government.

Manu stressed the World Bank’s willingness to provide funds to enhance electricity supply reliability, ensure fiscal sustainability, and bolster accountability while also optimizing existing grid-connected capacity to deliver more power.

Additionally, the projects aim to enhance states’ land administration, create business-friendly environments, and facilitate public-private partnerships.

Moreover, the Senate swiftly approved the securitization of the remaining N7.3 trillion Ways and Means revenue in Nigeria’s Consolidated Revenue Fund (CRF), in response to President Bola Tinubu’s letter addressed to Senate President Godswill Akpabio, which was read during the plenary.

The Senate also confirmed the appointment of Executive Commissioners for the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), following the consideration of the report from the Senate Joint Committee on Petroleum Upstream.

The confirmed appointees include Bashir Indabawa (North-West) as the Executive Commissioner for Exploration and Acreage Management; Kelechi Ofoegbu (South-East) as the Executive Commissioner for Corporate Services and Administration; Enorense Amadasu (South-South) as the Executive Commissioner for Development and Production; and Babajide Fasina (South-West) as the Executive Commissioner for Economic Regulation and Strategic Planning.

The Senate adjourned plenary until Jan 23. (NAN)