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The senate, on
Wednesday, deferred debate on the request of the government of Sao Tome
and Principe for the alteration of terms for a $30 million loan it owes
Nigeria.

The senate stood
down the request because the request was not presented to the senators
with the required details on Wednesday. President Goodluck Jonathan had
requested the lawmakers to approve a request by the government of Sao
Tome and Principe to extend the tenor of the $30 million soft loan
which it received from Nigeria early this year from the agreed six
years to thirty. According to Mr Jonathan, the prime minister of Sao
Tome and Principe asked for the alteration of the loan conditions due
to an IMF program which the country entered into recently which does
not allow them to take only long term loans.

New terms

Earlier this year,
both the senate and the Executive Council of the Federation had
approved the USD30 million loan to the government of Sao Tome and
Principe with a tenor of six years, no interest charge, and moratorium
with a disbursement plan of $10 million every six months, over an 18
months period. Now, the prime minister of Sao Tome and Principe is
asking for the same loan amount but for a tenor of 30 years, a six
years moratorium and three years disbursement plan, still at no
interest charge.

Although the first
tranche of $10 million have been disbursed, the loan agreements are yet
to be signed by the government of both nations. “In view of the
strategic nature of our relationship with Democratic Republic of Sao
Tome and Principe, and considering the need to provide all necessary
and reasonable support to the country, the prime minister’s request was
acceded to,” Mr Jonathan stated in his letter indicating that the
executive arm have agreed to the borrowing country’s request.

More details required

President Jonathan
said the adjusted conditions will not adversely affect the finances of
Nigeria but the senators said they want a detailed document, besides
the later, to be enable them make up their minds adequately. “Unless
somebody presents the details of the document, we have nothing to
contribute,” said James Manager (PDP Delta state). His submission set
up an argument that led to the eventual withdrawal of the request for
proper presentation on another legislative day. “Although the letter is
self explanatory, we will step it down and take it on another
legislative day,” said Senate president David Mark.