Barely 24 hours after the National Assembly assured that it would approve the $29.96billion loan request by the executive, President Muhammadu Buhari Tuesday announced the administration’s borrowing plan for 2020/22 fiscal years.
But the details of the fresh borrowing plan were, however, not provided.
This came as the Senate commenced the debate on the consideration for the $30bbilion loan request by the president at Tuesday’s plenary.
Senate President Ahmad Lawan, had at a media parley in Abuja Monday, expressed NASS readiness to okay the president’s request on the ground that it was justified.
“The question of whether we will pass the loan request of the Executive arm of Government, yes, we will pass it. If we don’t have money and you have projects to build them, how will you provide infrastructure that you need?
“But one thing is that, we are going to be critical, that every cent that is borrowed is tied to a project. These are projects that will have spillover effects on the economy, and we will undertake our oversight seriously to ensure that such funds are properly, prudently, economically and transparently applied on those projects,” Lawan had said.
Fresh borrowing plans
And as the Senate opened debate on the $30billion loan request, President Buhari announced fresh borrowing plan to cover three years to finance the deficit budget.
He spoke Tuesday while signing into law the N10.6 trillion 2020 budget passed by members of the National Assembly.
The signing of the budget coincided with the president’s 77th birthday which he celebrated at the Presidential Villa Abuja.
Speaking at the signing ceremony held in his office, the president said, the 2020 budget provided for aggregate expenditures of N10.594 trillion, an increase of N263.95 billion over the proposal by the executive which was submitted to the lawmakers in October 2019.
“We have examined the adjustments and may revert to the National Assembly with a request for a Virement or other relevant amendments,” he said.
The president said Minister of Finance, Budget and National Planning, Hajiya Zainab Ahmed, would make a public presentation of the details of the approved budget, which he believed would be successfully implemented.
“With today’s global oil market outlook and our strategic approach to revenue growth, we are optimistic that we will be able to finance the 2020 Budget.
“However, being a deficit budget, an appropriate 2020–2022 Borrowing Plan will be forwarded to the National Assembly, in due course.
“Mr. Senate President, Right Honourable Speaker, for this submission, I will once again count on your usual cooperation and support by ensuring quick consideration and approval of the Plan.
“To optimize the desired impact, I have directed the Ministry of Finance, Budget and National Planning and all Federal MDAs to ensure effective implementation of the 2020 Budget,” he said.
The president commended the National Assembly for ensuring detailed legislative review and passage of the 2020 budget within two months.
Commending the 9th NASS, he said: “I am very pleased that the National Assembly worked uncommonly long hours in the interest of our people and the national economy to ensure detailed legislative review and passage of the budget within two months.
“This patriotic zeal adopted by the 9th National Assembly has restored our budget cycle to a predictable January to December fiscal year.
“Furthermore, in the 20 years since the return to civilian democracy, this will be just the fourth time that the Federal Budget was passed before the end of the previous year, and this is the earliest.”
The president also called on the lawmakers to give speedy consideration to the Finance Bill 2019, saying the bill would support the funding and implementation of the 2020 budget.
“The passage of the Finance Bill, which I am told will be done in the coming days, will also be a landmark achievement worthy of recognition, being the first time this has been done in the last 20 years.
“We look forward to receiving this Bill, shortly, for presidential assent. Once passed into law, the Finance Bill will support the funding and implementation of the 2020 Budget.
“We shall sustain this tradition by ensuring that subsequent budgets are also accompanied by a Finance Bill.
“For these achievements, I must therefore congratulate and thank the Distinguished Senate President, the Right Honourable Speaker and indeed, all members of the Federal Legislature for their commitment and support,’’ he said.
The president also thanked the members of the National Assembly for supporting important legislations such as the Deep Offshore and Inland Basin Production Sharing Contract Amendment Act.
He said the legislations were vital to the successful implementation of the 2020 budget, stating that the mutual understanding and collaboration between the executive and legislative arms of government was essential.
“Now, we are well positioned to effectively implement the budget and deliver our promises to Nigerians. Businesses will also benefit as they are now in a position to plan more effectively. We have to sustain this harmonious working relationship. I expect that, going forward, this will be the norm,’’ he said
The president also directed that efforts should be made to ensure the 2021 Appropriation Bill is presented to the National Assembly in September 2020.
He expressed optimism that ministries, departments and agencies (MDAs) of government would meet the September deadline.
The president said the executive would continue to work with the legislature to give effect to the constitutional, legislative and other actions necessary to address the various challenges currently associated with the budgeting process, including the enactment of an Organic Budget Bill.
Senate debates loan request
Meanwhile, the Senate has commenced legislative procedure for consideration and approval of President Buhari’s 2016–2018 External Borrowing Plans totalling $29.96billion.
The body mandated its committee on local and foreign debts to carry out the required legislative scrutiny on the request and report back within four weeks.
The president’s request was forwarded to the committee for further legislative work following its presentation by the Senate Leader Yahaya Abdullahi during plenary.
The committee has Senator Clifford Ordia (PDP, Edo Central) as chairman and Senator Bima Mohammed Enagi (APC, Niger South) as vice chairman.
President Buhari had in a letter dated November 26, 2019, said the 8thNational Assembly approved only a part of the external borrowing request forwarded to it in September 2016.
This, according to him, stalled the federal government’s implementation of critical projects spanning across the mining, power, health, agricultural, water and educational sectors.
The letter reads: “Pursuant to Section 21 and 27 of the Debt Management Office (Establishment) Act, I hereby request for Resolutions of the Senate to approve the Federal Government’s 2016 – 2018 External Borrowing plan, as well as relevant projects under this plan.
“Specifically, the Senate is invited to note that: While I had transmitted the 2016-2018 External Borrowing Plan to the Eighth National Assembly in September, 2016, this plan was not approved in its entirety by the Legislature, only the Federal Government’s Emergency projects for the North East, (Four (4) States’ projects and one (1) China Exim Bank Assisted Railway Modernisation Projects for Lagos – Ibadan Segment) we’re approved, out of a total of thirty-nine (39) projects.
“The outstanding projects in the plan that were not approved by the Legislature are, nevertheless, critical to the delivery of the Government’s policies and programmes relating to power, mining, roads, agriculture, health, water and educational sectors.
“These outstanding projects are well advanced in terms of their preparation, consistent with the 2016 Debt Sustainability Analysis undertaken by the Debt Management Office and were approved by the Federal Executive Council in August 2016 under the 2016 – 2018 External Borrowing Plan.
“Accordingly, I have attached for your kind consideration relevant information from the Honourable Minister of Finance, Budget and National Planning, the specific outstanding projects under the 2016 – 2018 External Borrowing plan for which legislative approval is currently sought.
“I have also directed the Minister to make she available to provide any additional information or clarification which you may require to facilitate prompt approval of the outstanding projects under this plan.”
President warns against namedropping
Meanwhile, President Buhari has warned that he would not condone any political officeholders using the name of his office to canvass for votes in future elections in the country.
The News Agency of Nigeria (NAN) reports that the president stated this when some presidential aides, staff of the State House and Secretary to the Government of the Federation Boss Mustapha, presented to him a birthday card to commemorate his 77th birthday at the Presidential Villa, Abuja.
He, therefore, advised those interested in elective positions in 2023 to work hard as he would not allow anyone to use his name to canvass support.
The president also assured Nigerians that he would ensure free, fair and credible elections in 2023.
“Well, what I want to promise Nigerians is that I will work very hard on ensuring free and fair elections.
“All those that are going to succeed the National Assembly and the presidency, they better work very hard because I will make sure I use the law enforcement agents to ensure that elections are free and fair (and that) nobody uses his office or his resources to force himself on his constituency,’’ he said.
The president, who said he had accepted the realities of leadership in Nigeria, pledged to continue to do his best in transforming the country.
“I think I have come to accept the realities of leadership in Nigeria. You can only try, it is a terrific country, no matter what you do, there are people on daily basis that look for your faults and go to the press. So, you have to learn to live by that,’’ he further said.
President Buhari enjoined Nigerians to continue to exhibit the virtues of patience and patriotism to ensure speedy transformation of the country.
