Nigeria: House Approves Buhari’s Request for $5.8bn Loan, $10m Grant

The House of Representatives at plenary on Tuesday approved President Muhammadu Buhari’s $5.8 billion loan request and a grant of $10 million.

This was just as the House of Representatives also tuesday, passed the Finance Bill 2021 for second reading, after holding a public hearing on the proposed legislation was held the day before.

The approval for the loan request followed the consideration and adoption of report presented by the Chairman, House Committee on Aids, Loans and Debt Management, Hon. Ahmed Safana.

Safana, explained that the loans which were part of the federal government’s 2018-2020 external borrowing plan would be sourced from the World Bank, Islamic Development Bank, China Exim bank, Chinese Africa Development Fund, and International Fund for Agricultural Development.

He said, “That the House do consider Final Report of the Committee on Aids, Loans and Debt Management on the Proposed 2018–2020 External Borrowing (Rolling) Plan. That the House do approve the under listed ongoing negotiation of external borrowing of $5,803,364,553.50 and a Grant component of $10,000,000 under the 2018-2020 External Borrowing (Rolling) plan and a Grant component of $10,000,000 (Ten Million USD) under the 2018-2020 External Borrowing (Rolling) plan. Funding agency, World Bank (WB), German Consortium, Islamic Development Bank, China Eximbank, Bank of China, International Fund for Agricultural Development.”

Approving the loan, the House asked that the terms and conditions of the loan from the funding agencies be forwarded to the National Assembly for proper execution and commendation.

Meanwhile, on the Finance Bill, according to legislative rules, the presiding officers of the House, Speaker, Hon. Femi Gbajabiamila or Deputy Speaker, Hon. Ahmed Wase, was to presides over the second reading of a bill and refer the proposed legislation to the relevant committee, which would thereafter conduct a public hearing and report back to the House.

However, the House Committee on Finance first held public hearing on the Bill on Monday, before it was considered and passed for second reading on Tuesday.

President Muhammadu Buhari had transmitted the Finance Bill 2021 to the National Assembly for consideration and passage to give legal backing to some of the proposals in the 2022 Appropriation Bill which will soon be passed by the lawmakers.

The letter, dated September 30, 2021, titled ”Transmission of the Finance Bill 2021 to the National Assembly for Consideration and Passage into Law in Support of the 2022 Budget,” was read at the plenary on December 2 in both chambers by the presiding officers.

The proposed legislation was titled, “A Bill for an Act to Amend the Capital Gains Tax Act, Companies Income Tax Act, Federal Inland Revenue Service (Establishment) Act, Personal Income Tax Act, Stamp Duties Act, Tertiary Education Trust Fund (Establishment) Act, Value Added Tax Act, Insurance Act, Nigerian Police Trust Fund (Establishment) Act, National Agency for Science and Engineering Infrastructure Act, Finance Control and Management Act, Fiscal Responsibility Act; and for Related Matters.”

After the Bill scaled through second reading, Gbajabiamila referred it to the House Committee on Finance, chaired by Hon James Faleke.

Also at the plenary, the House okayed a Bill, titled “A Bill for an Act to Repeal the Public Enterprises (Privatization and Commercialization) Act, Cap. P38, Laws of the Federation of Nigeria, 2004 and Enact the Public Assets Reform Bill, 2021 for Improved Efficiency and Management of Public Assets in Nigeria; and for Related Matters.”

Udora Orizu in Abuja

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