Why We Approved FG's $5.5bn Loan Bid, By Reps

House of Rep


Trust and the capacity to keep to commitments were key in the decision by the House of Representatives to approve the $5.5 billion loan sought by the Federal Government.

The House on Thursday explained that it trusts President Muhamadu Buhari and that he will keep his words.

The two arms of the National Assembly had on Tuesday approved the president’s request to borrow $5.5 billion made up of $2.5 billion to fund the 2017 budget and another $3 billion re-finance the country’s domestic debts.

“We approved the loan because we believe that the President is a man of his words and will utilize the funds for the projects earmarked”, Abdulrazak Namdas, chairman of the House Committee on Media and Public Affairs, told journalists.

“If you have a person that sticks to his words and with President Muhammadu Buhari, we have no doubt that this loan will be put to good use. ”

He also explained that the nation was just recovering from recession and there was need to inject more money into the economy to rejig it adding that the terms and conditions of the loan were favourable and not injurious to the nation.

“We just came out of recession and we need to spend money on infrastructure. Borrowing is part of ways to rejig the economy but it is not good to borrow for frivolous items. However, when you borrow to invest, there is nothing wrong about it.”

He said that the House after studying the projects outlined to be executed with the proceeds of the loan realised that they were essential for rapid economic development.

Namdas added that the House also realised that the loan proceeds would enhance social development of the country and, considering the president’s integrity, they decided to approve the loan.

He assured that the House will also step up its oversight function to ensure that the loan was judiciously expended on the projects outlined.

“We don’t just approved the loan, we are going to do oversight and ensure that the loan is properly utilized.”

Some of the projects to be funded with the loan are the Mambilla Hydropower project, construction of a second runway at the Nnamdi Azikiwe International Airport, counterpart funding for rail projects and the construction of the Bode-Bonny Road, with a bridge across the Opobo Channel.