Federal Lawmakers have approved the eight hundred million dollar loan request by President Muhammadu Buhari from World Bank.
Abubakar Yunusa Ahmad, a member of the House of Representatives Committee on Loans, Aids and Debt Management confirmed the development in an interview with Channels Television’s Sunrise Daily on Friday.
While some have expressed concerns about the utilization of the loan, Ahmad stated that the incoming government would be responsible for deploying its own approach to utilize the funds.
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He added that the decision was made after careful consideration and evaluation of the economic situation in the country.
Ahmad said:
“The $800 million — there were so many talks that we did, especially we in the loan committee and we advised them: ‘First, leave this thing to the incoming government.
“But since the loan has been granted, we can collect. If we cannot use it, maybe when the incoming government comes, they may have a different approach to issues, maybe unlike this government that is there.
“Thank God, I won’t say it clearly but it was on social media that probably they intended not to use any of Buhari’s ministers because they have already taken them to have underperformed.
“So, the issue is, we have granted that loan, it is approved, so we want Nigerians to take it but it is not going to be utilised by this outgoing government. Now, if the incoming government comes, we will see also their own template.”
The President, Muhammadu had requested the Senate’s approval to take a loan of $800 million from the World Bank to mitigate the effects of subsidy removal.
According to him, the loan was part of the Federal Government’s subsidy palliative measures, which was aimed to assist fifty million vulnerable Nigerians or ten million households.
Despite this, some civil society organizations had rejected the request, citing concerns about the country’s debt crisis.
In response to the rejection, the Civil Society Legislative Advocacy Centre (CISLAC) released a statement earlier this week, expressing disappointment with the Buhari administration’s “nonchalant” attitude towards the country’s debt crisis.
Also, the Socio-Economic Rights and Accountability Project (SERAP) had warned the World Bank President Mr David Malpass asking him to use his “good offices to suspend any disbursement of the $800m loan to the Federal Government and to request the incoming administration to provide satisfactory explanations for the loan.”
SERAP had also told Mr Malpass and the World Bank “to reopen discussion on the reportedly approved $800m loan with the incoming administration to clarify the details on the rationale and use of the loan because the term of office of the government of President Muhammadu Buhari ends in May 2023.”
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