Senate approves new foreign loans as National debt about to hit N44.5trn.

Following the decision made by the senate on Wednesday  November 10 to approve the $16.23 billion and €1.02 billion loans requested by President Muhammadu Buhari,The nation’s public debt is set to rise further to N44.5 trillion.

An addendum has been requested by the President for the new foreign loans to be added to the 2018-2020 borrowing plans made in September.

The sum of $8.3 billion and €490 million loans were approved by the National Assembly in July as  initial requests in the 2018-2020 borrowing plan.

The World Bank, African Development Bank and the French Development Agency, AFD, are among the funding agencies.

Clifford Ordia, chairman, Senate Committee on Local and Foreign Debts, said the projects which funds were requested for in the 2018-2020 borrowing plan are ongoing. He said this while presenting a report yesterday.

He furtherstated that  the projects will stimulate a “rebirth of commercial and engineering activities and the consequent tax revenues payable to Government as a result of these productive activities will increase.

“The committee observes that these projects, some of which require additional financing, will have a great multiplier effect on stimulating economic growth through infrastructure development, job creation, poverty alleviation, health care and improve our security architecture.”

Although President Buhari said the loans would a create jobs and boost the economy, there’s a widespread concerns over the sharp increase in nation’s public debt especially the foreign component which has foreign exchange implications in terms of debt servicing.