The Senate on Tuesday approved the $5.5 billion loan request made by President Muhammadu Buhari.
$2.5 billion of the loan is meant to finance the 2017 budget while $3 billion will be used to refinance domestic debts.
The loan was approved when the Senate Committee on Local and Foreign Debts presented its report on Tuesday.
The committee is headed by Senator Shehu Sani
Giving the reason why the loan deserved the approval of the Senate, Sani said the projects the money would be used for were “essential for rapid economic and social development of Nigeria.”
He reasoned further: “The projects when completed will create job through its chain of downstream economic activities.
“The construction of the second runway of the Nnamdi Azikiwe International Airport will enhance the safety of the air passengers, increase the use of airports by international airlines thus increase the revenue of the government.
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“That the rail projects when completed will reduce the use of roads, its attendant congestion and thus minimise the cost of road maintenance.
“The Mamblilla hydro power project which has long been abandoned when completed will add substantially to the national grids thus improve power output of the country. The projects will improve the federal government’s revenue.”
Speaking in the same vein, Senate Leader, Ahmed Lawan, said there would be an improvement in the economy if the loan was properly applied.
Said he: “The $3 billion, for the general public to understand, is not a loan that will be used today. This is payments for loans or debts incurred before and it is cheaper to borrow from outside because of the current exchange rate of the dollar.
“So we are simply refinancing the payment of the debts. N2.5 billion will definitely, when fully and properly applied, make a huge difference in our economy.”
Deputy Senate President, Ike Ekweremadu, expressed the determination of the Senate to support the Executive arm of government to ensure that the budget was well implemented to improve the economic situation of the country.
