Why we approved $5.5bn loan requested by Buhari – House of Reps

House of Reps give reasons for approving Buhari’s request for $5.5bn loan.

Despite Nigeria’s rising debt profile, the House of Representatives has given reasons for approving the $5.5 billion loan request from the executive.

The Green chair chamber explained that the approval was given because of how reliable President Muhammadu Buhari, as he keeps to his words.

Naija News recalls that  that the joint house of the National Assembly had on Tuesday approved the president’s request to borrow $5.5 billion, which comprised $2.5 billion to fund the 2017 budget and another $3 billion to re-finance the country’s domestic debts.

The reason for the loan approval was revealed on Thursday by the Chairman of the House Committee on Media and Public Affairs, Rep. Abdulrazak Namdas.

Speaking with journalists, Namdas “we approved the loan because we believe that the President is a man of his words and will utilise the funds for the projects earmarked”.

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He said that the House, after assessing the listed projects to be executed with the proceeds of loan, realised that they are essential for rapid economic development.

The PPRO further stated that the House also recognised that proceeds from the loan would boost social development of the country, and considering the president’s integrity, there was no other choice than to approve the request.

Namdas said, “If you have a person that sticks to his words and with President Muhammadu Buhari, we have no doubt that this loan will be put to good use.”

He added that “We just came out of recession and we need to spend money on infrastructure. Borrowing is part of ways to rejig the economy but it is not good to borrow for frivolous items. However, when you borrow to invest, there is nothing wrong about it.”

“We don’t just approve the loan, we are going to do oversight and ensure that the loan is properly utilised.”

Some of the projects to be funded with the approved loan include the construction of a second runway at the Nnamdi Azikiwe International Airport, the construction of the Bode-Bonny Road, with a bridge across the Opobo Channel, counterpart funding for rail projects and Mambilla Hydropower project.