₦airaland Forum

Shehu Sani, who represents Kaduna Central senatorial zone, has condemned a recent unilateral move by governors of states in the northern part of Nigeria to obtain a loan from the Saudi Arabia-based Islamic Development Bank.

Mr. Sani, who chairs the Senate committee on foreign and domestic debt, said the governors’ effort violated the laws of Nigeria. According to the outspoken senator, who also serves as vice-chairman of the Senate committee on Foreign Affairs, the governors’ application for the loan is a breach of Nigerian laws “that clearly and unambiguously rest the exclusive right to borrow externally on the Federal Government.” He invoked Nigeria’s Debt Management Office Act of 2003 that stipulates that any government or agency could only obtain external loans through the federal government, adding that the federal government must guarantee such a loan. “The Act is explicitly clear that no state, local government or federal agency shall on its own borrow externally,” Senator Sani argued.

He rebuked the governors of the Northern states for flying to Saudi Arabia to solicit or collect loans without following the due process of the law. He added that Nigerian law provides that “State governments and their agencies wishing to obtain external loans shall obtain Federal Government approval in principle from the Federal Ministry of Finance.”

Drawing attention to another aspect of the law, Mr. Sani noted that the guideline on external borrowing provides that “All external borrowing proposals of the Governments and their agencies for the next fiscal year must be submitted not later than 90 days preceding the year to the Minister of Finance for incorporation into the public sector external borrowing program for the coming year.”

The senator remarked that any borrowing proposal must be submitted to the Federal Ministry of Finance and the Debt Management Office for consideration. He stated that each proposal must specify the intended purpose of the loan and its link to the government’s developmental agenda. In addition, each proposal must disclose the cost-benefit analysis showing the economic and social benefits to be derived from the loan, and a cash flow statement for the project to ascertain its viability and sustainability.

Senator Sani also disclosed that the Debt Management Office had a duty to ascertain whether the borrower had over-borrowed. He added that the borrowing proposal must be incorporated into the annual budget for federal executive council approval.

He stated, “No state or group of states can borrow from [an] external source without approval from the National Assembly and clearance from the Federal Ministry of Justice.”

The senator declared, “Whoever led the Northern Governors to Saudi for [a] loan is ignorant of the relevant provisions of the law or he has chosen to circumvent the law.”

Mr. Sani advised the Northern governors to go and read the relevant legal provisions. He also urged the Islamic Development Bank not to release any funds to the governors until the governors followed due process.

http://saharareporters.com/2016/02/11/northern-governors%E2%80%99-move-obtain-loans-islamic-bank-illegal%E2%80%94senator-sani

seun mynd44 frontpage please

Ah

We keep borrowing all the time hmmmm

ok.. getting federal backing is not going to b a problem... after all.nah there bubu wan go collect money to fund em budget...

Northern leaders selling their people back into slavery since 1960, this is what you get when you elect brain impoverish thieves as Governors, smh

Hmmm. Is Nigeria forsaken?

Dem 1 secretly fund BH.

Wherever Saudi Money goes, Wahabbism follows. Wherever Wahabbism goes, Terrorists are forged.
Alot of Islamic Countries are probing Saudi charities,loans etc while our treacherous governors up north are courting them.
Apparently the decreased flow of capital from Oil is taking a huge toll on their frivolous spending( hajj sponsorship, Money for Ileya Ram, mass weddings etc)..
Instead of building huge Refrigerated Storage facilities, Buying Refrigerated Trains for transporting agricultural produce to the South, Investing in Agroprocessing etc
Nice one Sen. Sani, I see El- rufai loosing out to him in 2019.

happney65:
He stated that each proposal must specify the intended purpose of the loan and its link to the government’s developmental agenda. In addition, each proposal must disclose the cost-benefit analysis showing the economic and social benefits to be derived from the loan, and a cash flow statement for the project to ascertain its viability and sustainability.

Senator Sani also disclosed that the Debt Management Office had a duty to ascertain whether the borrower had over-borrowed. He added that the borrowing proposal must be incorporated into the annual budget for federal executive council approval.

Frankly,I like to know the answer to the quote. Where the loan is sourced is not my issue. I am concerned what it will be used for? Is it to revamp the agricultural sector or mining sector? Is it to boost the local industry or to develop enabling infrastructures to grow the economy?Is it to create the atmosphere suitable for industrial growth?What exactly?

Please and please don't tell me its to develop the north! It is rather soooooo ambiguous. we need to know exactly what development and what North (where and why)?

Again my brothers from the North we need more than cheap solutions to our problems. The governors and local council leaders need to be innovative and drive the desired stimulus plan that will kick start the economic drive. The slumber is taking to long and the leaders often have misplaced priority. Often they say one thing and do the other. Where does it leave us. I don't know but when i sit to look at things my own way i am just disturbed about how it s done.

You take an example of the situation that we still have children being sent to the streets to waste away. Do we realize how long it will take to change such a person after he or she has wasted the best part of there life roaming aimlessly. We are talking of years in damage not days or even months, Years !!!

We need to change the way we do things if truly we want to become great in the future. As it is we have not started yet. The tiny i have seen is the Kaduna school program which El-Rufai started. I am yet to see any significant drive in terms of human resource development,economic revival or security improvement. Even the initial plan to achieve the desired goals is not noticeable,that is if any exist.

We need to start by saying where is the plan you are guided by? How well will the plan improve things long term or short term ? Who are the targeted beneficiaries does it solve the issues for the majority.Before we even talk where to source the relevant resources to actualize the laid down plans where needed.

Is not for a governor to sit idle and hope to get cheap monies. You need to cut unnecessary expenses for a start. Dump the expensive fleet of cars,government houses and become a real investor in the future of your state. Instead of a luxury car worth 15 million can you buy the necessary tools to process farm produce of provide a farmer more input to increase his yields so that next year he returns your money with interest Or sponsor 20 persons with the brains to India for an ICT course that could get them instant jobs,taking them off the streets & waiting list ?

Again we are waiting Northern Governors where is your plan for the North and Northerners ?

THE NORTH IS THE PROBLEM OF THE NORTH. ONLY MEN WITH WISDOM WOULD UNDERSTAND THAT.....?

OZAOEKPE:
THE NORTH IS THE PROBLEM OF THE NORTH. ONLY MEN WITH WISDOM WOULD UNDERSTAND THAT.....?

I agree with you as everyone is also responsible for there actions. We all reap what we sow. Its a simple circle.