There were indications on Sunday that Buhari’s $26.96bn loan request might not get a smooth passage in the House of Representatives
Findings by an eye witness showed that lawmakers were already querying the rationale for the “huge loan”, which they feared was a gradual return to the debt trap of yesteryears.
An official of the National Assembly said, “There will be serious legislative fireworks this week because we are not in ordinary times in Nigeria.
“Any loan that generations after today will continue to repay raises a lot of questions, and the person to provide the answers is Mr. President himself.”
It was gathered that some lawmakers in the House had, immediately the letter conveying the loan request to the House was read, queried the lack of details on how the government planned to spend the money.
A member stated, “$29.96bn is not N29bn. This is a huge amount of money. What do you want to do with it?
“It is not enough for you to write the parliament and say approve for agriculture and all that. Where are the details of the proposed expenditure? This loan request will not have an easy ride.”
House Minority Leader, Mr. Leo Ogor, admitted that members were worried that the President opted for a foreign loan at a time his administration had yet to account for the recovery it made as looted funds.
Ogor spoke more, “We have not seen the details of the loan. We will have to see the details and compare the proposal with the provisions of the Debt Management Office Act.
“There is so much money recovered from looted funds, Treasury Single Account. How have we utilised the money?
“We are not going to approve any loan without first seeing the details; make comparison with our DMO Act and our foreign liabilities.”
The Chairman, House Committee on Basic Education, Mr. Zakari Mohammed, also told The PUNCH that members would not hurriedly approve the request without seeing the details.
He explained, “Definitely, we must see the details. As a matter of fact, there will be delays if we don’t have the details.
“We will see the details, report to our constituents to seek their consent before we approve any loan.
“You don’t just apply for a loan and you want the parliament to approve it while you withhold the details.”
Also, the Chairman, House Committee on Works, Mr. Toby Okechukwu, noted that a loan of such magnitude must spell out the “structure for returns on investment.”
According to Okechukwu, the government must first explain how to recoup it, “not leaving it open to all the vagaries or uncertainties.”
However, when contacted, the Chairman, House Committee on Media and Public Affairs, Mr. Abdulrazak Namdas, told one of our correspondents that the lawmakers had not seen the details of the loan and had not taken any position on it.
“We will get to know what to do about the loan when we debate it.
“For now, there is no position yet, and it is not good to pre-empt the House on an issue that has not been tabled for debate,” Namdas added.
Asked whether the House would indeed debate the loan this week, he replied, “Hopefully, this week.”
Gbajabiamila did not respond to a text message that one of our correspondents sent to him on Sunday, asking his views on the loan.
Incidentally, the DMO had advised the government not to borrow more than $22.08bn in 2017.
The advice was contained in the agency’s DMO 2016 Debt Sustainability Analysis.
Besides the $29.96bn loan, The PUNCH also learnt that members were agitated over a separate request by Buhari for a virement of N180.8bn from the 2016 budget.
Members were said to be unhappy that the President did not consider their constituency projects an important area to spend money.
“They are not happy. Some have asked why the President did not request part of the money to be spent on their constituency projects.
“They have been saying that there is no money to fund constituency projects, but there is money somewhere in the budget that they now want to move to other sub-heads,” a source in the House told The PUNCH.
In his reaction on Sunday, Senator Sabi Abdullahi (APC, Niger-North) said it was part of governance to borrow funds with which to boost the economy.
He, however, noted that he had yet to study the details of the proposal sent to the National Assembly by Buhari.
Abdullahi, who is the Chairman, Senate Committee on Media and Public Affairs, said, “Borrowing is part of government policy but how much you are borrowing, what you are borrowing for and other details like that are what will be debated.
“Borrowing means the government is taking additional funds for some value addition. It is a policy in itself. But as for this particular one, I have not studied the documents; therefore, I won’t be able to make informed commentary on it.”