Senate speaks on Buhari’s quest for $800m World Bank loan

President Buhari had on Wednesday requested the approval of the Senate to obtain a $800 million World Bank facility to finance the National Safety Net Programme.

The spokesperson of the Nigerian Senate, Ajibola Basiru, says President Muhammadu Buhari’s request for approval to obtain a $800m loan from the World Bank less than three weeks to the end of his tenure will be thoroughly scrutinised by senators.

Mr Ajibola spoke on the issue when he appeared on Channels Television on Sunday.

The president had on Wednesday requested the approval of the senate to obtain the loan facility to finance the National Safety Net Programme.

Mr Buhari said the money will be used to support poor Nigerians likely to be worst affected by the planned removal of premium motor spirit (petrol) subsidy, and that the fund will be disbursed to beneficiaries through their bank accounts.

Many Nigerians have questioned the president’s decision to obtain the loan so close to the end of his administration in the face of an unprecedented level of debt that his government has already taken Nigeria to.

But speaking on the president’s request, the Senate spokesperson said relevant committees of the Senate will contact relevant agencies in consideration of the loan request.

Mr Ajibola said the Senate committees will examine the president’s request based on the debt sustainability requirement under the Fiscal Debt Responsibility Act.

“I wouldn’t know the attitude of the ninth Assembly to the request. As you have said, the request was made available on Wednesday and of course as is characteristic of the Nigerian Senate, the request will be sent to the relevant committees of the Senate for consideration and there will be interface with the relevant agencies of the executive to be able to get proper briefing,” he said.

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“And of course the rationale and justification will also be examined in the context of the debt sustainability requirement under the Fiscal Debt Responsibility Act,” he added.

Mr Ajibola, however, said he could not affirm whether the Senate will approve the loan request before the end of Buhari’s administration.

“So, I cannot, this evening say whether it will be approved or that it will not be approved and in any event, I am just one senator out of 109 senators that will be considering the position.”