11-14-2017, 04:29 PM
Following the report of Senate Committee on local and foreign debts which was presented by its Chairman, Shehu Sani, Senate on Tuesday approved USD5.5 billion bond for the Federal government.
In the report, Sani explained that the issuance of USD2.5 billion will finance the 2017 appropriation Act, while USD3.0 billion would be used to refinance domestic debts.
He further maintained that terms and conditions attached to those bonds were favourable to the integrity of the current administration, particularly as it affect the critical infrastructure, the bond was meant to finance.
Sani noted that the debt profile of the nation from his investigations so far was low, adding that the interest on the loan was low based on Nigeria’s exchange rates.
“That the Senate do receive and consider the report of the Committee on local and Foreign Debts on the issuance of USD2.5 billion to finance the 2017 appropriation Act and USD3.0 billion to refinance domestic debts”, Sani submitted.
In a word of caution, Senator Yusuf Abubakar Yusuf representing Taraba Central said, the Federal Government should properly monitor its foreign exchange, adding that payment of foreign debts solely depends on what happened to the foreign exchange rate.
Senator Gbenga Ashafa, urged that the report be approved in view of its cover of critical infrastructure across the six geopolitical zones.
“Mr President, Distinguished colleagues, the loan cover projects that spread across the six geopolitical zones and those projects were critical to Nigerians, so it should be approved”, he said.
“Remember that this 8rh Senate is known to be working for the benefit of Nigerians, and if the Senate approves, we will be turning the country into a construction site”, he added.
Giving further clarification, Senate leader, Ahmed Lawan noted that part of the bond would be used to offset foreign loans in order to reduce pressure on the nation’s foreign reserves.
In his ruling, Deputy Senate President, Ike Ekweremadu commended the Federal government for its commitment to development of infrastructure.
He added that government should cautiously monitor its foreign debts.
The report was then unanimously approved.
source:http://dailypost.ng/2017/11/14/nigerian-senate-approves-5-5bn-bond-buharis-govt/
In the report, Sani explained that the issuance of USD2.5 billion will finance the 2017 appropriation Act, while USD3.0 billion would be used to refinance domestic debts.
He further maintained that terms and conditions attached to those bonds were favourable to the integrity of the current administration, particularly as it affect the critical infrastructure, the bond was meant to finance.
Sani noted that the debt profile of the nation from his investigations so far was low, adding that the interest on the loan was low based on Nigeria’s exchange rates.
“That the Senate do receive and consider the report of the Committee on local and Foreign Debts on the issuance of USD2.5 billion to finance the 2017 appropriation Act and USD3.0 billion to refinance domestic debts”, Sani submitted.
In a word of caution, Senator Yusuf Abubakar Yusuf representing Taraba Central said, the Federal Government should properly monitor its foreign exchange, adding that payment of foreign debts solely depends on what happened to the foreign exchange rate.
Senator Gbenga Ashafa, urged that the report be approved in view of its cover of critical infrastructure across the six geopolitical zones.
“Mr President, Distinguished colleagues, the loan cover projects that spread across the six geopolitical zones and those projects were critical to Nigerians, so it should be approved”, he said.
“Remember that this 8rh Senate is known to be working for the benefit of Nigerians, and if the Senate approves, we will be turning the country into a construction site”, he added.
Giving further clarification, Senate leader, Ahmed Lawan noted that part of the bond would be used to offset foreign loans in order to reduce pressure on the nation’s foreign reserves.
In his ruling, Deputy Senate President, Ike Ekweremadu commended the Federal government for its commitment to development of infrastructure.
He added that government should cautiously monitor its foreign debts.
The report was then unanimously approved.
source:http://dailypost.ng/2017/11/14/nigerian-senate-approves-5-5bn-bond-buharis-govt/