The Pacesetter Frontier Magazine

Tag: foreign debt

  • FG tries to assure Nigerians that the Nation’s sovereignty hasn’t been signed away to china in loan commitment

     

    The Federal Government has lashed out at some Nigerians critical of the Muhammadu Buhari administration’s penchant for foreign loans, assuring the government has not signed away the nation’s sovereignty in loan commitment to China.

    Speaking to Daily Sun in Abuja, Minister of Works and Housing, Mr Babatunde Fashola, said that the government has always budgeted for its counterpart funding for most of the contracts it has with China.

     

     

     

    Talking specifically on the Abuja-Keffi Road where the government was expected to contribute 15 per cent equity fund for the expansion of the road, Fashola said that not only that has the government provided for its counterpart funding of Phase 1, it has also made provision for Phase 2 of the project.

     

    According to him, other projects are being funded by the African Development Bank (AfDB) and SUKUK funds.

     

    “We have budgeted for our counterpart funding. We did that last year. But, if you go into the budget, you will see about fifty something billion. It is to pay our counterpart funding of Phase 1 and to provide for Phase 2. If the road is approved today, we will start work and our obligation to pay our 58 per cent tax today. So, we have not only provided for Phase 1, we have provided in anticipation for Phase 2. We have also provided for so many other things. Nigerians will say that we have signed away our sovereignty and all of that; it is not true but that is a matter for another day’s discussion. To the best of my knowledge, these two projects are the only projects being funded by this ministry. So, contrary to the impression being created out there, that we have taken so much loan, it is not true! The other project being funded by multilateral loan is funded by the African Development Bank. That is Enugu to Bermenga Road and the bridge project that links Nigeria to Cameroon. It was a joint venture between Nigeria and Cameroon; to create a faster border crossing between Nigeria and Cameroon, after the Bakassi section. In fact, that bridge is essentially finished. We will hand it over later this year. So, Cameroon took a loan, we also took a loan. Just to be specific, those are the two projects being funded by China funding; contrary to what is being pushed out there” he insisted .

     

     

     

     

     

    Source: www.sunnewsonline.com

  • A financially sinking nation: Senate approves Buharis $8.3bn loan Amidst other foreign debts

    Senate, yesterday, approved President Muhammadu Buhari’s request for ongoing external loans to the tune of $8,325,526,537 and €490,000,000 under the 2018-2020 External Borrowing (Rolling) Plan.

    The approval followed the consideration of a report on the 2018 to 2020 External Borrowing (Rolling) Plan by the Committee on Local and Foreign Debt.

     

     

     

    Chairman of the Committee, Clifford Ordia, in his presentation, said the panel noted with utmost importance, the genuine and very serious concerns of Nigerians about the level and sustainability/serviceability of the country’s borrowings in the last decade.

     

    According to the lawmaker, “our (Nigeria’s) debt service figures constitute a huge drain on our revenue to the extent that it account for over 30 percent of our expenditure in the annual budget.”

     

    He said due to the shortfall in the country’s annual revenues in relation to the need for rapid infrastructure and human capital development, “we have had to pass deficit budget every year, requiring us to borrow to finance the deficit in our budget.”

     

     

     

    Ordia said out of the total borrowing request of $36,837,281,256 contained in the re-forwarded request of Mr. President, $26,154,536,533 is for funds proposed to be borrowed from various financial institutions from the Peoples Republic of China.

     

    He said the proposed projects in the ministries of Transportation, FCT, Aviation, Works and Housing, Agriculture and Water Resources and some commissions, such as National Universities Commission, North East Development Commission and the National Identity Management Commission, are mostly ongoing projects and programmes in respect of which external borrowed funds have been spent in the past, including loans.

     

    “These projects have a great multiplier effect on stimulating economic growth through infrastructure development, job creation and poverty alleviation, stimulation of commercial and engineering activities and the consequent tax revenues payable to government as a result of these productive activi ties,” Ordia said.

     

     

     

     

     

    Source: www.sunnewsonline.com