Buhari to break his proposed $30 billion foreign loan plan into three tranches

- President Muhammadu Buhari will now break his proposed $30 billion foreign loan plan into three tranches

- This is to ensure easy accessibility and possible approval by the Nigerian Senate

- The president will present the 2017 budget to the National Assembly on Wednesday, December 14

A report by New Telegraph indicates that President Muhammadu Buhari will now break his proposed $30 billion foreign loan plan into three tranches.

According to the report, the president's move is to ensure easy accessibility and possible approval by the Nigerian Senate.

The Senate had rejected the consideration of a request by President Buhari for a $29.9bn External Borrowing Rolling Plan over a period of three years.

The action of the red chamber has prompted frequent meetings between President Buhari and Senate President Bukola Saraki, in order for the Executive and Legislative arms of government to find a solution.

The president will present the 2017 budget to the National Assembly on Wednesday, December 14 and address the legislators on his plans to tackle the economic recession currently ravaging Nigeria.

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The report noted that President Buhari decided to have a rethink along the views of majority of Nigerians, who felt that he had no reason whatsoever to borrow such huge amount of money at once and put the nation into perpetual debt.

The president now plans to break the loan into three tranches so that it could be utilised in stages, to enable the economy to absorb the fund meaningfully and be able to yield tangible results.

A source quoted in the report said: “One of the ministers, who is my close friend has told me that they want to break the loan into three or four tranches because $30 billion is so huge amount that our economy cannot absorb it in one fiscal year.

“When they break it as they are now planning to do, you will find out that it will be easier to be applied for meaningful infrastructural development and other services rather than taking the huge lump sum and then be tempted to waste, misapply or misappropriate it.

“Taking the loan in tranches will also make it easier for the National Assembly to carry out effective and result oriented oversight on the use of the fund because government must be accountable to the people in whatever it is doing since democracy is the government of the people.

“I am also optimistic that when the executive arm becomes reasonable, more responsive and responsible in its policy decisions, the National Assembly will also give it a corresponding support because governance is a collective responsibility.

“However, the parliamentarians, being the representatives of the people, have more work to do to protect the interest of the people from any anti-people proposals of the executive arm, and that is why I am happy about what the Senate has done.”

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Meanwhile, the Independent Corrupt Practices and Other Related Crimes Commission (ICPC) has asked Ministries, Agencies and Departments (MDAs) of the federal government to return their unspent personnel funds into the sub-treasury of the federation.

The ICPC also indicated its readiness to carry out a System Study and Review of the 2016 Personnel Vote to ensure total compliance with section 16 of the Finance (Control and Management) Act, LFN, 1990 and the Financial Regulations regarding unspent balances in line with the extant rules and regulations.