Senate, in a sitting that lasted less then five minutes, yesterday, approved President Muhammadu Buhari’s request to borrow a fresh loan of N850 billion to finance the 2020 budget.

The request was contained in a letter read on the floor of the Senate by Senate President, Mr Ahmad Lawan.

Buhari had sought the approval of the Senate, in line with provisions of the 1999 Constitution.

Buhari said the loan, which would be sourced from the Nigerian domestic capital market to fund critical capital projects, had become necessary following the sharp fall in the price of crude oil. He said the conditions in the domestic capital market were favourable in terms of availability of funds and relatively low interest rates.

“This cause of action is deemed prudent, given our current realities,” he said.

The outbreak of Covid-19 had led to low demand for oil in the international market, with dire impact on the implementation of the 2020 budget. The Senate considered Buhari’s request and unanimously granted approval for the loan, bypassing the usual rigorous committee scrutiny and public hearings.

It, however, mandated its relevant committees to liaise with Minister of Finance, Mr Zainab Ahmed, on the modalities for the loan.

“The Senate may wish to recall that the 2020 Appropriation Act provided for N1,594,986,700,544 of new domestic borrowing and N850 billion of new external borrowing. These borrowings were to part-finance the 2020 budget deficit of N2,175,197,885,232 only. External borrowing from the international capital market increases Nigeria’s external reserves, provides access to lower costs as well as avoids crowding out private sector borrowers who also wish to access the domestic capital market, recent developments in the global economic environment as a result of the coronavirus pandemic and the decline n international oil prices have made it less attractive to borrow from the international capital markets at this time. However, it remains our intention to access the international capital market when conditions improve to refinance this N850 billion of new borrowing and epitomise the benefits inherent in external borrowing,” Buhari said.

Buhari informed Senate that he had “directed Minister of Finance, Budget and National Planning to make herself available to provide any additional information or clarification which you may require.”

However, the resumption of the two chambers of the National Assembly did not come without its usual drama, as journalists were barred from accessing the complex and covering proceedings by the lawmakers.

Citing the outbreak of the deadly Covid-19 as a reason, security agents denied journalists duly accredited to cover activities of the National Assembly entry, despite media professionals’ strict compliance with modalities put in place by the management of the parliament.

Journalists, numbering over 100, were not only prevented from entering the National Assembly, but asked not to stay anywhere close to the entrance to the complex by security agents who claimed that they were under strict instructions to bar journalists from the complex.

Sun