SENATORS yesterday had a hectic day when Finance
Commissioners stormed the National Assembly to justify states' $3.39 billion
foreign loan request.
Chairman, Senate Committee on Local and Foreign Debts, Uzamere Ehigie, however, threatened to shut the door against any state government that has not appeared before the committee to defend its loan bid.
Federal Government had sent the proposed pipeline projects, Medium Term External Borrowing of about $7.9 billion to the National Assembly and it was passed to the various committees for scrutiny.
The development came amidst growing concern on the rising loan profiles of federal and state governments.
Minister of State for Finance, Yerima Ngama, however, explained that the country's loan profile is not up to 17 per cent of the country's GDP.
He told newsmen shortly after appearing before Senate Committee on Local and Foreign Debt to defend requests of the federal and state governments for a total loan of $7.9 billion.
He said: "Nigeria's loan profile is not up to 17 per cent of the country's GDP. We can only express concern if it gets up to 40 per cent. These loans being asked for by federal and state governments are concessionary.
"These loans are completely different from the ones the country exited from some years ago. The tenure of the loans is zero per cent and with zero interest rates".
The commissioners, who represented their state governments, complained of their inability to get disbursement on the amount approved last year, despite that all laid down procedures were met.
The breakdown of the loan shows that for the states; $3.059.39 billion and Federal; $4.846.3 billion to bring the total figure to $7,905.69 billion.
The summary further showed that continuation of the Eurobond Issuance (Federal) was $1 billion; Diaspora bond (federal) $0.1 billion to bring the grand total to $9,005.69 billion.
Finance Commissioners present at the National Assembly included that of Adamawa, Ogun; Plateau; Abia and Imo states who all made presentations before the committee to support their requests for various sums of the loans to prosecute projects ranging from growth and employment; health programme investment credit; housing liquidity facility and erosion watershed management project.
Speaking before the committee, Ibrahim Bukar, Commissioner for Finance, Adamawa State, informed the committee that the state required $543 million for health; Youth employment and rural access infrastructure.
The breakdown, according to him, showed that the state would need $16.6 million for health projects; $13.88 million for youth empowerment and $15 million for rural access rehabilitation, in addition to $8.7 million for irrigation.
The committee chairman, after the committee took briefings from Ngama and the commissioners, told newsmen that the aim of the interaction was to determine how much the federal and state governments were borrowing and for what purpose.
He, however, admitted that his committee could only inspect Federal Government projects, saying: "We don"t have constitutional power to oversight the states, but we have been availed the projects the loans are meant for".
The Chairman assured that the legislature would do justice to the document, but complained on the communication gap between the Ministry of Finance and state governments on issues relating to loans.
He urged the Minister of Finance to look into the issue raised by commissioners with a view of reconciling them and named the states that have not appeared to defend their own loans as Ondo, Rivers and Delta.
In his words: “We are here to represent you and Nigerians want to know what you do with the money, so, it is fair for us to bring the decision”.
The loan, according to the Minister of State, Finance, explained that the repayment period of the loan is about 40 years and it is concessional loan which is quite different from the one Nigeria has borrowed before the loan is like free interest loan.
He added that states have been banned from negotiating for loans individually to ensure that the interest rates of the loan are the same.
Commissioner for Finance from Imo State, Chike Okafor, submitted a proposal for $45 million and $20 million respectively being the cost of erosion management and youth empowerment support projects.
Inside the document, the Federal Government will borrow $300 million to support the provision of affordable houses by the private sector for Nigeria at low interest rate and long term repayment period to provide cheap funds for buying or building houses by Nigerians.
Also, $200 million will be borrowed to support agriculture in the country which, he said, will make provision for seeds, fertilizers and agrochemicals.
Chairman, Senate Committee on Local and Foreign Debts, Uzamere Ehigie, however, threatened to shut the door against any state government that has not appeared before the committee to defend its loan bid.
Federal Government had sent the proposed pipeline projects, Medium Term External Borrowing of about $7.9 billion to the National Assembly and it was passed to the various committees for scrutiny.
The development came amidst growing concern on the rising loan profiles of federal and state governments.
Minister of State for Finance, Yerima Ngama, however, explained that the country's loan profile is not up to 17 per cent of the country's GDP.
He told newsmen shortly after appearing before Senate Committee on Local and Foreign Debt to defend requests of the federal and state governments for a total loan of $7.9 billion.
He said: "Nigeria's loan profile is not up to 17 per cent of the country's GDP. We can only express concern if it gets up to 40 per cent. These loans being asked for by federal and state governments are concessionary.
"These loans are completely different from the ones the country exited from some years ago. The tenure of the loans is zero per cent and with zero interest rates".
The commissioners, who represented their state governments, complained of their inability to get disbursement on the amount approved last year, despite that all laid down procedures were met.
The breakdown of the loan shows that for the states; $3.059.39 billion and Federal; $4.846.3 billion to bring the total figure to $7,905.69 billion.
The summary further showed that continuation of the Eurobond Issuance (Federal) was $1 billion; Diaspora bond (federal) $0.1 billion to bring the grand total to $9,005.69 billion.
Finance Commissioners present at the National Assembly included that of Adamawa, Ogun; Plateau; Abia and Imo states who all made presentations before the committee to support their requests for various sums of the loans to prosecute projects ranging from growth and employment; health programme investment credit; housing liquidity facility and erosion watershed management project.
Speaking before the committee, Ibrahim Bukar, Commissioner for Finance, Adamawa State, informed the committee that the state required $543 million for health; Youth employment and rural access infrastructure.
The breakdown, according to him, showed that the state would need $16.6 million for health projects; $13.88 million for youth empowerment and $15 million for rural access rehabilitation, in addition to $8.7 million for irrigation.
The committee chairman, after the committee took briefings from Ngama and the commissioners, told newsmen that the aim of the interaction was to determine how much the federal and state governments were borrowing and for what purpose.
He, however, admitted that his committee could only inspect Federal Government projects, saying: "We don"t have constitutional power to oversight the states, but we have been availed the projects the loans are meant for".
The Chairman assured that the legislature would do justice to the document, but complained on the communication gap between the Ministry of Finance and state governments on issues relating to loans.
He urged the Minister of Finance to look into the issue raised by commissioners with a view of reconciling them and named the states that have not appeared to defend their own loans as Ondo, Rivers and Delta.
In his words: “We are here to represent you and Nigerians want to know what you do with the money, so, it is fair for us to bring the decision”.
The loan, according to the Minister of State, Finance, explained that the repayment period of the loan is about 40 years and it is concessional loan which is quite different from the one Nigeria has borrowed before the loan is like free interest loan.
He added that states have been banned from negotiating for loans individually to ensure that the interest rates of the loan are the same.
Commissioner for Finance from Imo State, Chike Okafor, submitted a proposal for $45 million and $20 million respectively being the cost of erosion management and youth empowerment support projects.
Inside the document, the Federal Government will borrow $300 million to support the provision of affordable houses by the private sector for Nigeria at low interest rate and long term repayment period to provide cheap funds for buying or building houses by Nigerians.
Also, $200 million will be borrowed to support agriculture in the country which, he said, will make provision for seeds, fertilizers and agrochemicals.
Compass
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