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Tag: Loan Request

  • Southern, Middle Belt leaders call on Buhari to rescind decision to request for $800m loan

    Southern, Middle Belt leaders call on Buhari to rescind decision to request for $800m loan

    The Southern and Middle Belt Leaders Forum (SMBLF) has appealed to President Muhammadu Buhari to rescind his decision to request for the approval of $800 million loan from World Bank.

    Recall that just few days to leaving office, president Buhari wrote to the  Senate and House of Representatives to approve the loan request to finance the National Social Safety Network Programme.

    However, in their reaction, the Southern and Middle Belt Leaders said in a communiqué issued at the end of its meeting held in Abuja on Wednesday that the country’s indebtedness has reached the skies.

    The meeting, chaired by elder statesman

    One of the leaders, Edwin Clark, deliberated on the present state of affairs in Nigeria, especially the renewed siege of insecurity around the country, the ongoing post-election judicial process in the various tribunals and the national economy.

    The SMBLF restated “its time-tested position that the future of Nigeria can only be sustained on the basis of true federalism and respect for the autonomy of the federating units.

    “Expresses shock at the escalation of killings, pogroms, total destruction of entire communities and means of livelihood in several targeted areas in select states since after the 2023 General elections, mainly in Plateau, Benue, Nasarawa, Taraba, Southern Kaduna, Kebbi, and various states of the South East, where hundreds of armless citizens are being slaughtered daily.

    “Notes with grave concern that the nation’s security agencies have continued to show unwillingness to decisively deal with the perpetrators of these monstrous acts, or rather, deliberately turned a blind eye to the atrocious occurrences, thereby exposing the country to a seeming state of war. It is shameful that non-state actors are allowed to openly tote dangerous weapons about and rampage the country unhindered.

    “Condemns, in unmistakable terms, the cavalier and totally nonchalant attitudes of the outgoing governors of some states over the collapse of security in certain parts of their states, which has continued to exacerbate the worrisome situation, and hopes their successors will show greater commitment to the welfare of their citizens who are the victims of this sad situation.

    “Further warns that the continuous abdication of Government’s primary and abiding constitutional responsibility of safeguarding the lives and properties of its citizens is an irresistible signal to Nigerians to exercise their inalienable rights of self-defence, by all means.

    “Again deplores the inhuman plight of thousands of indigenous people in the Middle Belt states driven out of their homes and have now become Internally Displaced Persons (IDPs) for years as well as several other Internally Displaced Persons in different parts of the country, left to live in conditions that impinge on their human rights as citizens of this country. Hence, calls on the Federal Government to, without any further delay, facilitate the return and reintegration of these Nigerians to their Communities.”

    Meanwhile, the Southern and Middle Belt leaders praised Nigerian youths for their courage and astuteness in expressing their interest in the future of this country and called on them not to become discouraged by some of the seeming outcomes.

    Southern, Middle BeltThe communiqué reads, “SMBLF strongly urges the Nation’s Judiciary to be aware that all Nigerians are watching with very keen interest the ongoing judicial processes at the Presidential Election Petition Tribunal as well as various election tribunals across the country.

  • Oyo Assembly approves Makinde’s request to borrow N22.bn

    Oyo Assembly approves Makinde’s request to borrow N22.bn

    Oyo State House of Assembly has granted the request of Governor Seyi Makinde to borrow N20billion to fix infrastructure in the state.

    The loan termed contractor financing loan facility is to be sourced from the First Bank of Nigeria PLC.

    The House also approved the request of the governor to access another N2.5billion Central Bank of Nigeria (CBN) credit support intervention fund for the health sector.

    Makinde sought the approval of the lawmakers in two letters of request forwarded to the Assembly and read during plenary yesterday by Speaker Adebo Ogundoyin.

    The governor noted that the N20billion loan became imperative in view of the dwindling revenue accruable to the state from the Federation Account and the drop in Internally Generated Revenue due to Covid-19 pandemic.

    According to the request, if accessed, the money will be used to fund and support priority projects to boost economic activities.

    On the N2.5billion CBN credit support intervention fund, Governor Makinde said the money would be used to revamp the health care facilities, manage the Covid-19 pandemic and promote other health initiatives of his administration.

    The Speaker said the House approved the requests of the governor in view of the importance the present administration attached to infrastructural development, especially the construction and rehabilitation of roads and other social amenities, as well as the need to upgrade health facilities to combat Coronavirus and other health challenges.

    The Deputy Speaker, Mr. Muhammad Fadeyi, reacting to the requests, hailed the government for managing the affairs of the state despite the myriads of economic, social, security and health challenges confronting the nation.

    He said the loan would help the government in achieving its goals.

    Majority Leader Mr. Sanjo Adedoyin and Minority Leader Mr. Asimiyu Alarape, who moved and seconded the motions, said that the requests could not have come at a more appropriate time than now, to enable the government finance some infrastructural development projects as well as address Covid-19 pandemic.

    Moving the motion in favour of the loan, the legislators urged the government to ensure that all zones of the state benefit in terms of improved infrastructure.

    Alarape said that he supported the loan request because it was not to pay salaries, noting that there was apparent deficit in infrastructural facilities across the state.

    At the plenary, Makinde sent another letter asking the Assembly to confirm Mrs. Aderonke Aderemi as President, Customary Court of Appeal.

    She is to appear at plenary for screening and confirmation on May 28.

    Also presented during the plenary was another letter seeking the confirmation of members of the Civil Service Commission.

    Nominated as Chairman of the commission is Kamorudeen Aderibigbe. Kolajo Isiak, Toyin Akanmu, Solomon Ogunjinmi and Taiwo Oluwagbemiro are to serve as members. The nominees are also billed for confirmation next Thursday.

    Following a report by Chairman, House Committee on Education, Science and Technology, Mr. Oluwafowokanmi Oluwafemi, the bill for the renaming of Ibarapa Polytechnic, Eruwa as Adeseun Ogundoyin Polytechnic, Eruwa was passed into law.

    Disturbed by the menace of indiscriminate parking of trailers on the highways, the Assembly asked the Bureau of Investment Promotion and Private Partnership and Ministry of Local Government and Chieftaincy Matters to ensure the construction of trailer parks in strategic areas of the state.

    The motion, moved by Mr. Seyi Adisa representing Afijio Constituency, asked the executive arm to engage investors in public/private partnership basis to build the trailer parks.

    Adisa had bemoaned gridlock, abandoned vehicles on the road and accidents on the intra-state highways occasioned by indiscriminate parking of vehicles.

    Besides having a place where vehicles can park, he noted that the state would also improve its Internally Generated Revenue (IGR) by erecting such trailer clusters.

  • IMF commences processing of Nigeria’s $3.4bn request

    IMF commences processing of Nigeria’s $3.4bn request

    The International Monetary Fund (IMF) has commenced consideration of Nigeria’s request for the release of its contribution with the Fund to enable the country confront the fiscal risks facing arising from outbreak of the COVID-19 pandemic.

    IMF managing director, Ms Kristalina Georgieva, hinted in a statement yesterday that the Fund was working relentlessly to attend to Nigeria’s request so that a proposal can be considered by the IMF’s executive board as soon as possible.

    The IMF Boss however did not reveal whether the Fund would release the total amount to Nigeria when the request is eventually considered for approval.

    Nigeria has a contribution of $3.4bn with the IMF and it is entitled to draw up to the whole of the said amount.

    Minister of Finance, Budget and National Planning, Hajiya Zainab Ahmed, had disclosed on Monday that the federal government has applied for full withdrawal of its $3.4 billion contribution with the IMF to help fight the spread of the pandemic and provide palliatives to the affected households and institutions.

    “We have in the first instance applied for that maximum amount, then in the process when we negotiate we might get the maximum amount or less but that is the amount of our contribution with the IMF. This will not be tied to any conditionality. However, it is important to clarify that Nigeria does not intend to negotiate or enter into a formal programme with the International Monetary Fund at this time, or in the foreseeable future,“ Ahmed noted.

    Acknowledging receipt of the request and confirming that the Fund was processing it, the IMF MD yesterday noted that Nigeria’s economy was endangered by the Coronavirus scourge and the drop in global crude prices.

    She said, “Nigeria’s economy is being threatened by the twin shocks of the COVID-19 pandemic and the associated sharp fall in international oil prices. President Buhari’s administration is taking a number of measures aimed at containing the spread of the virus and its impact, including by swiftly releasing contingency funds to Nigeria’s Center for Disease Control and working on an economic stimulus package that will help provide relief for households and businesses impacted by the downturn.

    “To support these efforts, Nigeria’s government has requested financial assistance under the Fund’s Rapid Financing Instrument (RFI). This emergency financing would allow the government to address additional and urgent balance of payments needs and support policies that would make it possible to direct funds for priority health expenditures and protect the most vulnerable people and firms. We are working hard to respond to this request so that a proposal can be considered by the IMF’s Executive Board as soon as possible.”

  • Senate summons nine ministers over Buhari’s $22.7bn loan request

    Senate summons nine ministers over Buhari’s $22.7bn loan request

    The Senate on Wednesday summoned nine ministers to defend their ministry’s component of the $22.7billion external loan request of the Federal Government.

    President of the Senate, Ahmad Lawan said the affected ministers must appear before the Senate Committee on Local and Foreign Debt on or before Monday next week.

    Lawan’s directive followed a complaint by the Chairman of the Senate Committee on Local and Foreign Debt, Senator Clifford Ordia, that the panel cannot meet the two-week timeline to submit their report on the loan because nine ministries have failed to defend their proposals.

    It could be recalled that some ministers including Minister of Information and Culture, Lai Mohammed, Minister of Works and Housing, Raji Fashola, Minister of State for Transportation, Gbemisola Saraki and the Minister of the Federal Capital Territory, Mohammed Bello had on Tuesday defended their requests before the Senate Committee.

    Kaduna, Katsina and Kogi State Governments also appeared before the Committee.

    Senator Ordia said: “It will interest you that out of the 18 beneficiary Ministeries, only eight have appeared before the committee.

    “I think it is important to note that approving a loan of over $22billion is a very serious matter.

    “We need serious explanation from the Ministries to enable us submit our report to the Senate.

    “In view of this obvious delay in the Ministries’ appearance, we will need another two weeks to enable us make a submission to the Senate.”

    He listed the defaulting Ministers to include that of Education, Adamu Adamu, Power, Sale Mamman, Niger Delta Affairs, Senator Godswill Akpabio, Humanitarian and Disaster Management, Sadiya Umar Farouk, Water Resources, Engr. Suleiman Adamu, Health, Osagie Ehanire, Communications and Digital Economy, Dr. Isa Ali Ibrahim Pantami, and Agriculture, Sabo Nanono.

    Lawan in his response directed the ministries to appear before the committee without fail.

    He said: “Let me advise that this Senate is committed to ensuring that such important issued like the foreign loan request of the executive need to be treated with seriousness by both sides.

    “The Senate is making every possible effort to ensure that we understand the request.

    “Therefore, we need details and information so that we take the appropriate decisions as quickly as possible.

    “I will urge those Ministeries that have not appeared before the committee to do so between now and Monday.

    “I believe this is an advice that will be taken very seriously by the agencies you have just read out.”

  • ‎Senate rejects El-Rufai’s $350m World Bank loan request

    The Senate on Thursday rejected a request for a $350 million loan from the World Bank by the Kaduna State Government.

    The rejection followed a presentation of the committee’s report by the Chairman, Shehu Sani (APC, Kaduna Central).

    Last year, the Kaduna State Government requested the loan for ‘Development Policy Operation’ from the World Bank.

    Governor Nasir El-Rufai said the state needed a $350 million loan from the World Bank to achieve its governance objectives in the “short to medium term”.

    He also said the Bank agreed to provide the facility after “checking the laws, accounts and performance of the state”.

    The Sani-led committee, however, suspended the state’s request for foreign loans, adding that no loan request will get approval until the lawmakers were convinced about it.

    Sani, who has been having a running political battle with Governor El-Rufai, however, explained that due process must be followed before any loan is approved, and that he has the duty to ensure the state does not inherit a debt it could not repay.

    Reading out the findings, observations as well as recommendations of the committee, Mr. Sani explained that one of the reasons for the rejection is because “Kaduna State is the second most indebted state in Nigeria”.

    Sani also said the panel met with relevant officials before arriving at the decision.

    “Based on the submissions and interactions with the invited Government officials, the Committee observed as follows:

    “1. That the Development Policy Operation, DPO (Budget Support) of USD 350 million for Kaduna State was approved by World Bank in 2016 and captured in 2016 – 2018 borrowing plan as approved by the National Assembly.

    “2. That the credit facility has an attractive low financing data of 1.25% interest; moratorium of 5 years and a 25 year maturity tenor.

    “3. That the facility is already captured in the 2016-2018 Medium Term Expenditure Framework (MTEF).

    1. That according to the latest Debt Management Office figures, Kaduna State has a total debt stock of USD232.1 million.

    “5. That approving the current loan request of USD350 million for Kaduna State will bring its total debt stock to USD582.1 million.

    “6. That if this loan request is approved, the new total debt stock of USD582.1 million for Kaduna State will be unsustainable and necessarily attract huge financial burden on the meagre federal allocation to the State.

    “7. With the new borrowing, the Debt Service to Revenue Ratio of Kaduna State will further be increased and thus impact negatively on the ability of the State to meet other basic needs of its people.”

    He further explained that the new debt stock will likely, further erode the economic viability of the State and recommended “that the Senate do reject the request of USD350 million for Kaduna State as contained in the 2015 2018 External Borrowing (Rolling) Plan of Mr President, Commander-in-Chief of the Armed Forces.”

    “With the high total debt stock of Kaduna State at the moment, the new borrowing sought, will make the debt service to revenue ratio high, thereby worsening the State Government’s ability to meet its other basic obligations to the people and further erode the economic viability of the State,” he added.

    Suleiman Hunkuyi (APC, Kaduna North), while supporting the recommendation, said he is “amazed, perplexed and in shock” to find that what the governor has gone ahead to indicate to the general public “is completely different from what was found on the application of the facilities as indicated in the detailed drawdown table”.

    “As a representative of my people, I’ll like to say that the application of that loan is a misplaced priority. I strongly stand behind the prayers of the chairman of the committee that this very important chamber do reject that request for the loan,” he said.

    Also supporting the recommendation, Danjuma La’ar (PDP, Kaduna South), explained that the loan is “not important” and as a messenger of the people, he was not given the authority for a loan to be approved.

    “I met with the representatives of Kaduna state and asked what the loan was all about? What projects is this loan meant for? I should know from zone one, two and three who are the contractors responsible for the project? Where will the projects be sited? But these questions were not answered.

    “I realised that the money received in Kaduna state is much and there is nothing happening in Kaduna state lately. They are busy retiring and sacking people and you are asking for a loan. To do what with the loan? I don’t understand. If you are collecting a loan without giving a reason, I am not in support of such loan, my people are also not in support of it. Please, this loan should not be granted,” he said.

    The Deputy Senate President, Ike Ekweremadu, while stating that loan application is an acceptable means of infrastructure financing in governance, however said “the law in its wisdom has made provision for the parliament to interrogate such requests to be sure that there is no need for that loan and ensure that due process is followed.”

    “Also, to ensure that existing loan portfolio for the state or federal government would be able to accommodate such further request so as not to put so much pressure on that state or the federal government.”

    Ekweremadu, thereafter, put the question and the senators unanimously rejected the loan request.

  • Akwa Ibom assembly approves N1.9 bn loan request by executive

    Akwa Ibom assembly approves N1.9 bn loan request by executive

    The Akwa Ibom House of Assembly has approved a loan request of N1.9 billion to enable the state government pay its counterpart fund for the provision of infrastructure in public schools.

    This was sequel to Governor Udom Emmanuel’s letter sent to the House and read at plenary on Thursday.

    After a careful deliberation by members present, the House Leader, Mr Udo Kerien Akpan, moved the motion for approval and it was seconded by Mr Effiong Bassey, the member representing Oron State Constituency.

    According to the letter from the governor, the loan will enable the state government to provide facilities in primary schools and junior secondary schools.

    Also at plenary, the assembly passed a resolution authorising the state government to issue a letter to the Federal Ministry of Finance to purchase 600,000 bags of fertiliser for farmers in the state.

    According to the letter, the 600, 000 bags of fertiliser would be sold to the farmers at N5,500 per bag in order to boost food production in the state.

    The letter stated that N3 billon would be refunded to the Federal Government after sales.

    The Speaker, Mr Onofiok Luke, directed the clerk of the house to communicate the resolution of the House to the governor and other relevant authorities for action.