Nigeria Content Online

The tactical
intervention of the Senate President, David mark, stopped the Senate
from throwing out the $3.702 billion outstanding external borrowing
plan of the federal government.

The intervention of
the Senate President came on Wednesday after a heated debate which saw
most Senators strongly opposing the plan of the federal and state
governments as requested by the president.

Mr Mark who noticed
that the debates might not favour the bill refused to call for votes on
it, and instead referred it to the Senate Committee on Finance and the
Committee on National Planning.

President Goodluck
Jonathan had for the second time since assuming office written the
National Assembly on 4th November demanding the approval of his
outstanding borrowing plan for 2010.

The National
assembly, in April, partially approved the plan which was forwarded to
them alongside the 2010 budget proposals. They approved $915 million
out of the $5.22 billion loan amount proposed under the 2010 borrowing
plan leaving out $4.31 billion.

However, having
gotten the $915 million already approved, the president is now asking
for the approval of the outstanding amount of $3.702 billion which
sixteen states, the Federal Capital Territory, and the federal
government are the beneficiaries.

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

The amount is to be
implemented on projects like rail construction, building of markets,
urban water and sanitation projects, equipping of hospitals, and rural
access and mobility projects.

Most senators
argued that the loans – especially those requested by the states – has
vague intentions and were not necessary now that 2011 is just a month
away.

“This money, from all indications is money that will disappear into private pockets,” Lee Maeba (PDP River state) said.

He argued that with
the 2011 elections around the corner, the monies will be used by the
state governments to run campaigns and mortgage the state rather than
apply it for the reason they were borrowed.

Like Mr. Maeba,
Ahmed Lawan (ANPP Yobe) said he does not support the borrowing plan. He
added that they do not even have the report on the utilisation of the
initial $915 million that was approved and acquired in April.

Uche Chukwumerije (PDP Abia state) also argued that the timing of the borrowing – end of tenures; election season – was wrong.

However, a few
other senators, including the deputy senate president and the senate
president argued in favour of the borrowing plan saying that it is
practically impossible for any nation to develop its infrastructure on
it’s internally generated funds.