Reps okay $5.803bn loans, $10m grants for Buhari

The House of Representatives has approved external borrowings totaling $5.803 billion and a total grant of $10 million for the Federal Government as part of the proposed 2018–2020 External Borrowing (Rolling) Plan No.3 recently requested by President Muhamadu Buhari.

The approval followed the adoption of the report of the House Committee on Aids, Loans and Debt Management at plenary on Tuesday after consideration by the Committee of Supply.

The report of the committee recommended that the House “approve the underlisted ongoing negotiation of external borrowing of $5,803,364,553.50 and a grant component of $10,000,000 under the 2018-2020 External Borrowing (Rolling) plan.”

According to the report presented before the House, the World Bank is granting $2,300,000,000; German Consortium, $2,300,000,000 and $10,000,000 loan and grant, respectively; Islamic Development Bank, $90,000,000; China Eximbank, $786,382,967; Bank of China, $276,981,586:50; and the International Fund for Agricultural Development, $50,000,000.

Presenting the report, chairman of the committee, Ahmed Safana, prayed the House to consider the report on “request for a concurrent approval of donor fund projects under the Federal Government-proposed 2018-2020 external borrowing (rolling) Plan No. 2 and addendum to the request for concurrent approval of multilateral fund projects under the 2018-2021 Federal Government external borrowing (rolling) plan.”

Approving the loan, the House asked that the terms and conditions of the loan from the funding agencies be forwarded to the National Assembly

before the execution of the same for approval and proper documentation.

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In another development, the House passed through second reading of the Finance Bill 2021 after holding a public hearing on the proposed legislation on Monday.

This is against the Nigerian parliamentary rules and procedures in which the presiding officers (speaker and deputy) preside over the second reading of a bill and referred such to the relevant committee, which will in turn organise a public hearing and report back to the House.

However, reverse was the case for the 2021 Finance bill as the House committee on finance first held public hearing on the proposed law a day before it was considered and passed for second reading.

President Muhamadu had on December 2, transmitted to the House, the 2021 Finance Bill, seeking the legislature speedy passage of the legislation to support the implementation of the N16.39 proposed budget.

The bill proposed key reforms to specific taxation, customs, excise, fiscal and other reIevant laws, specifically providing for enhanced domestic revenue mobilisatlon efforts to increase tax and non-tax revenues and tax administration and legislative drafting reforms, particularly to support the ongoing automation reforms by the Federal Inland Revenue Service (FIRS).

The bill was passed for second title with the long title: “A Bill for an Act to Amend the Capital Gains Tax Act, Companies Income Tax Act, Federal Inland Revenue Service (Establishment) Act, Personal Income Tax Act, Stamp Duties Act, Tertiary Education Trust Fund (Establishment) Act, Value Added Tax Act, Insurance Act, Nigerian Police Trust Fund (Establishment) Act, National Agency for Science and Engineering Infrastructure Act, Finance Control and Management Act, Fiscal Responsibility Act; and for Related Matters,” and referred the Committee on Finance.