[size=18pt]Reps oppose, defer approval of $4.455 foreign debt[/size]

Headlines Oct 19, 2010 By Tordue Salem

ABUJA -The House of Representatives, Tuesday, stood down a motion seeking the National Assembly’s approval of cumulative foreign loan approval of over US$900million.

The Speaker, Dimeji Bankole had summarily and abruptly suspended a resolution on the motion as majority of the members opposed the loan proposal in its entirety.

Over US$300million of the said loan had earlier in the year been approved by the chambers of the National Assembly, with an outstanding of about US$507million, which was approved in installments, leaving a fresh loan proposal of US$4.455 billion, which was Tuesday shelved by the green chamber after majority of the members kicked against its terms and the negative implications for the Country’s economy which is already in dire straits.


President Jonathan wrote the House of Representatives last week, seeking for its approval pursuant to section 21 of the Debt Management Office Act to borrow a total sum of $4.455 billion from 7 Foreign Development Agencies to fund power and sundry projects.

He wrote that, the outstanding $2.455 billion if approved, will go for Gas Pipe Line projects to shore up the Country’s electricity generating capacity. among other projects.

“I write to draw your attention to the 2010 External borrowing plan which I forwarded to the National Assembly in April, 2010 for your consideration along with the 2010 budget proposals, which was graciously approved by the Senate and the House resolutions 85 of Tuesday 27th April, 2010 and 92 of Thursday 22nd April, 201o respectively”’ the letter read in part.

According to the President, “The borrowing plan was segmented for purposes of comprehension into three broad category namely, projects that had been negotiated and those that were being appraised as well as the pipeline projects/programmes”. “

“The sum total for the negotiated projects stood at $1.854 billion and that of the appraised project was $1,073.2 million while $2.415 billion represented the sum of Pipe line Projects”, the letter reads on. The there category of projects come to a total of $5.242 billion”, the President wrote.

He explained that, “You may please recalled that in consideration of the 2010 budget in conjunction of the afore-mention borrowing plan, the National Assembly graciously approved only the International Development Association (IDA) component of the negotiated projects in the sum of $ 915.million out of $1,073.2 million for appraised projects and $2.415 billion for pipeline projects the entire balance now remaining for National Assembly’s approval is $4.427billion”, adding that,

“There is no doubt that the approval given on the component of the negotiated project would impact tremendous on the provision of critical infrastructure which the country is in dire need to jump start the engine of economic growth and improve the living standards of the citizens.

He buttressed “It is pertinent to add that the proposed loans are highly concessionary credit facilities which the country needs to access in order to develop our infrastructure and create employment opportunities.

“I have directed the Honourable Minister of Finance to effectively monitor the various projects to ensure that the funds are judiciously utilized and that there is value for money”.

But majority of the members of the National Assembly, said the proposal must not be approved. “Our own Dr. Ngozi Okonjo-Iweala has warned us not to return to foreign borrowing, so we must be careful the way we are passing resolutions. We know how much suffering it took us to pull out of the Paris Club creditors, so there is a need to be careful”, Rep. Abike Dabiri warned.

Her colleague, Rep. Ita Enang described most of the projects in the borrowing plan, earmarked for funding as “unnecessary”, and queried the Presidency for failing to account for all the monies withdrawn from the Excess Crude Account and other accounts.

Several other members opposed the motion, which was read by the Leader of the House except, a few who sought its express approval by the lawmakers.

Thanks to our honourable lawmakers.

They should account for their previous ECA withdrawals first.

I am sure House of Reps will pass the bill if they are settled first.

Ibime:

They should account for their previous ECA withdrawals first.

I am sure House of Reps will pass the bill if they are settled first.

Sadly true.

Do the members of the house really know what they are doing, they are only asking the govt not to borrow to develop but should keep paying their bogus salaries from  what we are earning.

Will this borrowing really create jobs, is it impossible to borrow money to truly develop this country, these id10ts are the same f00ls who would be cornering the contracts and not execute them.

Ibime:

They should account for their previous ECA withdrawals first.

I am sure House of Reps will pass the bill if they are settled first.

The bolded part is actually the big issue, where were they when they were drawing down on the ECA.

So all the noise about the Marvelous GEJ giving us light is they want to go and borrow money from foreign countries

These are the same people blowing ECA anyhow.

Na wa oh!!!!!!

If President Jonathan is honest let him save money from other ends. If he has issues with the money NASS are earning then let him propose a pay cut.

No amount of blackmail will work here. We don't want to get into any Foreign debt trap when we have not accounted for the money we make from oil sales.

I support the NASS on this one. We do not need any crazy borrowing.

If Jonathan is confident about what he is doing let him defend his stance and tell us that there is no other way to save money or source money from within for this projects. This is pure waste.

A Government that wants to invest 1 billion on importing foreign dustbins can not be trusted with foreign borrowings.

I'm just wondering why Nigerian leaders cannot resist foreign borrowing. It frankly baffles me.

A Government which can't account for the $6bln it has already drawn down from ECA. A govt which spends N10bln on anniversary spending which disappeared into thin air. These are not to be trusted with additional foreign borrowing. The budget this year (4.7trn) is already by far the greatest fiscal expansion in Government in the history of Nigeria. What have they/ are they doing with the current budget already? GEJ Govt is spendthrift Govt. I rather Naija doesn't spend that spend to "chase develpoment" when all their spending ends in foreign accounts. We remember that GEJ left Bayelsa with N28bln debt and we reject this kind of economics. We understand its election year, but some peeps wanna sacrifice our future for their own personal ambitions.

Ibime:

A Government which can't account for the $6bln it has already drawn down from ECA. A govt which spends N10bln on anniversary spending which disappeared into thin air. These are not to be trusted with additional foreign borrowing. The budget this year (4.7trn) is already by far the greatest fiscal expansion in Government in the history of Nigeria. What have they/ are they doing with the current budget already? GEJ Govt is spendthrift Govt. I rather Naija doesn't spend that spend to "chase develpoment" when all their spending ends in foreign accounts. We remember that GEJ left Bayelsa with N28bln debt and we reject this kind of economics. We understand its election year, but some peeps wanna sacrifice our future for their own personal ambitions.

This is why I blame the opposition sometimes for the woes of Nigeria. Why has nobody in opposition talked about this 28bl debt Jonathan left in Bayelsa to question his economics?