Ezrel Tabiowo recaptures last Thursday’s drama in the Senate over the President’s request which caused ripples between majority and opposition Senators
Following President Goodluck Jonathan’s request to the National Assembly seeking its approval for a loan to the tune of $1 billion to tackle Boko Haram, the Senate was last Thursday torn apart along partisan lines as Senators were divided over giving the president’s request an approval during consideration.
President Jonathan had in the letter addressed to the Senate President, Senator David Mark, which was read a day before the senate went on an eight weeks vacation in July, explained that the loan would be used to upgrade equipment, training and logistics for the armed forces and other security agencies.
The letter read: “I would like to bring to your attention the urgent need to upgrade the equipment, training and logistics of our Armed Forces and Security Services to enable them more forcefully confront this serious threat.
“For this reason, I seek the concurrence of the National Assembly for external borrowing of not more than $1 billion including government to government arrangements for this upgrade.”
The President’s request which though was approved eventually by the senate last Thursday, generated heated debate amongst lawmakers on the floor during plenary.
Whilst Senators of the majority Peoples’ Democratic Party (PDP) pushed for a speedy approval of the president’s request which was forwarded to the National Assembly a bit over two months ago, opposition senators on the other hand vehemently objected to its approval on the basis that doing so would amount to working against the provisions of the constitution.
The disagreement was sparked off during consideration of the report of the Joint Committee on Finance; and Local and Foreign Debt on the request for external borrowing to the tune of $1 billion to tackle security challenges facing Nigeria.
Firing the first salvo of objection to President Jonathan’s loan request, Senator Olubunmi Adetunmbi, APC, Ekiti North, while citing section 81(4) of the 1999 constitution explained that the President’s loan request did not follow the procedure as provided by the constitution.
He said: “Mr. President, permit me to refer us to Section 81 (a) and (b) of the constitution. Section 81, sub-section 4 reads: “If in respect of any financial year, it is found that the amount appropriated by the Appropriation Act for any purpose is insufficient, or a need has arisen for expenditure for a purpose for which no amount has been appropriated in the act, a supplementary estimate showing the sum required shall be laid before each House of the National Assembly and the head of any such expenditure shall be included in a supplementary appropriation bill.
“Mr. President, Section 83 of the constitution says the National Assembly may by law, make provision for the establishment of contingency funds of the federation and for authorizing the president if satisfied.”
According to him, going ahead to approve the $1 billion request would have an eventual consequence on the existing Appropriation Act.
“Mr. President, this request to the best of my ability, and with the assistance of this constitution, has consequences for the existing Appropriation Act. We do not question the right of Mr. President to ask for money or ask to borrow money but there is a process that needs to be followed and the provision of the constitution for this process is what I just read.
“Mr. President, also, section 41 (a) and (b), 42 (1) and (8), section 44 (1), (2) and (3) of the Fiscal Responsibility Act give us a clear guidelines of the procedures for borrowing and the management of such borrowing under this kind of circumstances. If you permit me, I will read section 41, (a) and (b) of the Fiscal Responsibility Act 2007, says: Section 9 under debt and indebtedness says the framework for debt management borrowing in financial year shall be based on the following rules: (1), that government at all tiers shall only borrow for capital expenditure and human development provided that such borrowing shall be on concessional terms with low interest rate and with a reasonable long period subject to the approval and the appropriate legislative body where necessary. This, government shall ensure that the level of public debt, the proportion of national income is held at a sustainable level and as prescribed by the National Assembly from time to time.”
The Ekiti lawmaker, while explaining the procedures for borrowing, quoted Section 42 of the constitution which reads: “The president shall within 90 days from commencement of this act and with advice from the minister of finance subject to the approval of the National Assembly set the borrowing limit to the amount of consolidated debt of the federal and state government pursuant to the provisions of items 7th and 5th of the part 1 of the Second Schedule of the Constitution.”
He argued that, wherever the fundamentals of the proposals cited in these provisions are changed due to economic stability, the president shall submit to the National Assembly a request to review this current borrowing.
He continued: “Finally, Section 44, (1),(2) and (3) of that same act says: ‘Any government of the federation or its agencies or corporation desirous of borrowing shall specify the purpose for which the borrowing is intended present a cost analysis detailing the economic and social benefit for the purpose for which the intended borrowing is to be applied. Without prejudice to sub-section 1 of this section, each borrowing shall comply with the following conditions: (1), exercise of prior authorization in the appropriation or other acts or law for the purpose for which the borrowing is to be utilized. (b), such borrowing shall solely be applied towards long-term capital expenditure.”
But the Chairman of the Senate Joint committee on Finance; and Local and Foreign Debt, Senator Ahmed Makarfi while responding to the concerns raised by Senator Adetunmbi said, “all the issues raised are not relevant to the issue we are considering now,” adding that “what is required is in compliance with the Public Procurement Act.”
Apparently frustrated at the inability of opposition lawmakers to understand the committee’s report, Senator Makarfi explained further the nature of the external borrowing saying, “The loan is in kind, there is no cash outflow and repayment will be so appropriated and will only be made subject to the approval of the National Assembly.”
The Senate President, Senator David Mark who presided over last Thursday’s plenary said Senator Adetunmbi’s explanation with reference to the constitution on the matter was incorrect.
He said: “The question you ask is whether Adetunmbi is right in what he said or not and the simple answer is no, he is not right.
“So please, merely quoting the constitution does not make him to be right. Because he is quoting the constitution doesn’t mean he is right. Please, I want us to address the issue properly, I know he quoted constitution and he quoted from our Standing Order but that is not what makes him to be right.”
On his path, the Deputy Senate President, Senator Ike Ekweremadu who expressed worry at the tension generated, and political colouration assumed by the debate, called for caution amongst his colleagues over the matter.
Ekweremadu said: “Your Excellency, very distinguished colleagues, I will still come to the issue of the constitution but I would like to join the Senate President in our dealing that we do not go through any debate on this matter, because I am too worried about the character of the debate.
“I don’t want a situation where if we leave this chamber, and the public will believe that one political party is supporting a fight against insurgency and another political party is not supporting it. I am only asking for caution especially as it concerns the political party we belong so that Nigerians do not misunderstand us.”
According the Senator Ekweremadu, borrowing is guided by a different legal framework, a different legislation which is in the Fiscal Responsibility Act. Against this backdrop, he stressed that the National Assembly and the President was in full compliance in the manner the loan request was handled.
Coming under order 53(7) of the Senate standing rules, Senator Babafemi Ojudu, while objecting to the observations of the Deputy Senate President accused him of linking the opposition with improper motive which suggested that the senators were failing to support the fight against insurgency by virtue of the objections raised.
But the Senate President who at this point ruled him out of order went ahead to put the question to vote, one which led to the approval of President Jonathan’s request.
Earlier, Senator Makarfi in his presentation of the Joint committee’s report observed that the President’s loan facility request was not a cash loan but supply of military hardware to be paid for over seven years.
According to him, terms such as interest rate cannot be indicated under the circumstance of said external borrowing.
He added that, “also the request is for a ceiling of $1 billion and not that at the moment the whole amount will be utilized. Government will procure on the terms stated based on needs assessment of our security agencies.”
