Why Senate rejected El-Rufai’s $350million loan request - Welcome To NaijaDeeds

Thursday, March 29, 2018

Why Senate rejected El-Rufai’s $350million loan request

The Senate on Thursday, rejected the request of Governor Nasiru El-Rufai, to secure a $35million World Bank loan for Kaduna State.

The lawmakers stated that obtaining the loan may put so much pressure on the management of the state, which presently has a debt burden of $232.1 million.

This decision was taken, after the Senate accepted the recommendations of its Committee on Local and Foreign Debt and contributions by all the three Senators from the state, who declined support to the loan request.

Senator Shehu Sani, who presented the report on Kaduna State Development Policy Operation (DPO) Credit Facility from the World Bank, said although it was approved by the bank in 2016, accepting the loan would compound the financial situation of the state.

“According to the latest Debt Management Office figures, Kaduna State has a total debt stock of $232.1 million.

“With the new borrowing, the Debt Service to Revenue Ratio of Kaduna State will further be increased and thus impact negatively on the ability of the state to meet other basic needs of its people.

“The new debt stock will likely, further erode the economic viability of the State,” Sani said.
Also, Senator Suleiman Hunkuyi (APC-Kaduna North) said the loan was a misplaced priority and should be rejected.

“One is amazed to find out what the governor has gone ahead to indicate to the public is completely different from what we found in the application of those facilities.

“I am a representative of my people; for whatever reason the Nigerian law stipulates, this chamber shall moderate to approve for such facility.

“I crave the indulgence of our colleagues that the application of that loan among other things is indeed a misplaced priority as we have clearly seen and hence strongly stand behind the prayer that this chamber do reject the request for the loan,” he said.

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