Senate Warns States Over Foreign Loans


The Senate has threatened to delist State Governments that failed to appear before its committee on Foreign Debts and Public Accounts to defend their foreign loans from the beneficiaries of the Medium Term Borrowing plan.

Chairman of the Senate Committee on Foreign Loans and Debt, Senator Uzamere Ehigie made this known during an interactive session the committee organised to afford state governments the opportunity to defend their foreign loan requests.

Various State Governments stormed the National Assembly to declare their intended utilisation of the loan totalling about $3.39 billion.

The National Assembly had recently endorsed Federal government’s proposal for pipeline projects medium Term external borrowing of about $7.9 billion

Most of the state commissioners of finance who represented their various state governments complained of their inability to get disbursement on the amount approved last year despite that all laid down procedures were met.

Senator Uzamere however assured that the National Assembly would do all within its powers to establish a robust communication between the states and the Ministry of Finance to facilitate the loan process.

The states governments are seeking about $3.39billion loan while the Federal government applied for $4.8 billion dollars.

The Budget Office had also disclosed that all states in the country have been banned from negotiating for the loan individually. This is to ensure that the interest rates of the loan are the same.