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For the second time
since assuming office, President Goodluck Jonathan has sent a request
to the national assembly for the approval of his outstanding borrowing
plan for 2010.

In a letter to the
Senate president dated November 4th , the President asked the lawmakers
to approve the loans, saying the money will be applied to critical
projects that will improve the living standards of Nigerians immensely.
The presentation of the president’s letter is coming just a day after
the lawmakers cried out that the nation’s loans are getting high.

The National
Assembly had in April partially approved the 2010 borrowing plan which
was forwarded to them alongside the 2010 budget proposal. It will be
recalled that out of the $5.22 billion loan amount proposed under the
2010 borrowing plan, $915 million – loan amount of the World Bank
negotiated projects – was approved by the lawmakers leaving out $4.31
billion from other donors.

“Consequent upon
netting out the loan amount of $915 million already approved and
removal of two pipeline projects, the proposed loans/credits
outstanding for National Assembly approval now amounts to $3.702
billion.” the president said in his letter.

The loans and
credits would be secured on concessionary terms with repayment periods
of 25 to 40 years and a moratorium of 7 to 10 years.

According to the
President in his previous letter in August, the borrowing plan is
segmented into three broad categories that includes projects that had
been negotiated, those that were being evaluated as well as the
pipeline projects.

“The loans would be
lent to the participating states on the same terms and conditions they
are obtained from the donor agencies under a subsidiary loan agreement
that would be executed between the states and the federal ministry of
finance,” the president explained in his letter.

2011 – 2013 expenditure framework

Meanwhile,the President also forwarded the 2011 to 2013 Medium Term Expenditure Framework (MTEF) to the lawmakers.

The 2007 Fiscal Responsibility Act stipulates that the budget be
based on the MTEF which is to be approved by both the Federal executive
Council and the National Assembly before becoming effective. “The MTEF
was duly approved by the Federal Executive Council on September 8th ,
2010,” the president said in the letter accompanying the document.