Buhari seeks Senate approval to borrow N2.10 trn

ABUJA – President Muhammadu Buhari, has sent a supplementary appropriation bill for the 2015 fiscal year to the Senate for approval.

The president, in a letter conveying his request, which was read Wednesday, during plenary, by the Senate President, Bukola Saraki, asked the Senate to grant his request to borrow the sum of N2.10 trillion to finance the budget.

He explained that the N882 billion loan earlier proposed by the past government to finance the budget had to be raised to N2.10 trillion, due to emerging realities in the country.

The source of the loan, according to the president, would be from both local and foreign.

Details coming- –

Buhari seeks Senate approval to borrow N2.10 trn

World Bank defends $75m loan to Edo

The World Bank has defended its $75 million loan to Edo State Government, saying it grants significant funding only to governments it trusts will use the funds judiciously to achieve its development results.

Oshiomhole

Speaking yesterday at a 3-day retreat for members of the State Executive Council and Permanent Secretaries holding at the Transcorp Hilton Hotel, Abuja to brainstorm and re-strategise on raising the bar on governance in the state, with the theme, “Finishing Well”, two top executives of the World Bank, Mrs Gloria Joseph Raji and Dr Khwima Nthara said the Bank trusts Edo State Government to use the fund properly as it only provides support to governments the Bank trusts to use its funds for development results.

The Bank executives said “Each time we came to Edo, we were quite impressed that we were taken around to see the results of these reforms and that is why it was easy for us at the world Bank to sell the reforms programmes in Edo to our Board in Washington.”

Mrs. Gloria Joseph Raji, Senior Economist, Macro-Economic and Fiscal Management, World Bank, Nigeria said, “through programmes for result financing, the World Bank provides finance for governments with a focus on result and capacity building. So disbursement of funds is based on specific program results that have been pre-agreed on between the bank and respective governments.

“For example, we could say, if you achieve this level of vaccination with your own resources, then we will disburse some money to you”.

Mrs. Joseph-Raji continued, “When we disbursed $75 million under the First Developmental Policy Operation to Edo State, we did not say to Edo State, you must use it to build this hospital, or this school or all of that, it was on the basis of your completion of critical policies and institutional actions which we call ‘prior actions’.

“So, the focus of Developmental Policy Financing is policy and institutional reforms. We work with you to implement certain policies and institutional reforms and on the basics of implementation of certain critical reforms and actions that we agreed on, we will disburse the entire trunk of the funds.”

She emphasised the need for institutional reforms as this she says, ensure continuity of government developmental programs even after their tenure.

She said, “Institutional reforms are very important because they outlived government regimes so, it is important for governments to undertake reforms of their systems and processes, institutionalized them and that is what the focus of DPO are, to support policies and institutional reform efforts and the bank is usually on hand to provide Policy and strategic advice, so we work with the governments in designing, in thinking through your policy and institutional reforms actions and then we provide advice as necessary.

“On the basis of the completion of certain critical policies and institutional reforms actions which has been agreed between you and the Bank, the loan is approved by the bank and so, funds are being transferred. The entire trunk of funds is transferred into the government bank account and they are co-mingled with your other funds. The funds are not tied to specific projects, you co-mingled them into your funds and you spend them on your needs.”

She stressed, “The Bank provides significant funding to only governments it trusts will use the funds properly to achieve its development results because if we do not trust that you will use this fund judiciously, it would be a risk of the fund. So DPO’s are provided basically to those governments that the Bank trusts to use the funds for development results”.

Also speaking, the Programme Leader, Equitable Growth, Finance and Institution, World Bank, Nigeria, Dr Khwima Nthara said, “reforms have to be institutionalized. Edo is very lucky today to have a very reform minded Governor, next year, he leaves office. We pray that a like-minded Governor takes over from him but circumstances change, you don’t know who else is going to come with the Governor and that is why it is important to institutionalize reforms so that they should transcend individual personality.

“Even when Comrade Adams Oshiomhole is not here, his legacy should remain, not just what he has achieved, but the building blocks of the reform programs must remain so that even when the regime changes, the reforms might stay. That is why institutionalizing those reforms are important.

“Each time we came to Edo, we were quite impressed that we were taken around to see the results of these reforms and that is why it was easy for us at the world Bank to sell the reforms programmes in Edo to our Board in Washington.

The World Bank team noted that of the 36 states of the federation, only Lagos and Edo State Governments as well as the Federal Government have been able to access this developmental funds and therefore called on other state governments to embark on critical, efficient and Developmental reforms project to enable them quality for the World Bank Developmental funds

World Bank defends $75m loan to Edo

Oshiomhole tackles PDP over anti-$75m loan comment

The Edo State Governor, Adams Oshiomhole, has explained that the state government opted for the $75m World Bank facility as an inevitable option, having been allegedly denied its statutory allocations by the Peoples Democratic Party which he accused of bleeding the nation’s “treasury dry.”

Oshiomhole

Oshiomhole, who spoke to journalists on Sunday on the recent approval of the loan by the Senate, alleged that the state lost about $11.6bn from the Nigerian Liquefied Natural Gas, out of which over N30bn was meant for Edo State as its share.

He also said that despite several calls by the PDP, including the state chapter, to prevent the state government from accessing the loan, his administration would not be “distracted by nonentities.”

But the state Chairman of the PDP, Chief Dan Orbih, described the governor’s claim as “nothing but unrealistic expression of sentiment by a drowning politician.”

Oshiomhole said, “The PDP is a nuisance in this case. First is that if they didn’t steal the money, we didn’t even need to borrow. What we lost from the NLNG alone, under the PDP Federal Government, is about $11.6bn. Edo State share of that is more than N30bn. If you realise that from every $1bn, we get more than N2.7bn.

“So, for $11.6bn, multiply that by N2.4bn, you will see that we would have even made over N35bn. So, if the PDP did not steal and bleed the treasury dry, our legitimate revenue stolen by Dan Orbih’s party and their cohorts is much more than that. My hope is that they should be brought to justice.

“Even his (Orbih) own crime in the Nigerian National Petroleum Corporation, where he was just a director for two years. Two years, from a man selling 50 bags of cement and turning into a multi- billionaire with houses all over the country! I think he doesn’t quite understand that people know him more than he thought, but I don’t want to be distracted by nonentities.

“The truth is we thank God that God has sent President (Muhammadu) Buhari to stop the liquidation of the country and he is set to rebuild it. So, my first remark to the PDP is that they are still not in a position to blame the victim of their own looting, which is unprecedented in the history of this country. As you can see, you heard President Buhari saying last week that, after they finished looting Nigeria’s revenue, they even borrowed to loot.

The governor explained further, “You heard the President saying that they took a billion dollar loan from China and they had already taken six hundred away. By now if they were still there, they would have finished the remaining one. Every day you read the newspaper, you find it. So, my only problem is that the media is not interrogating them.

Oshiomhole dismissed allegations that the state ranked high among states with huge debt profiles, arguing that it was the “least borrowed,” in the South-South, with N25bn as the only major loan taken since he assumed office.

He also restated that the state government had not fallen short of its financial obligation to its workers.

He said, “Now, what are the facts? In the South-South zone, look at the debt profile. You can Google DMO (Debt Management Office) and find out who owes what. Edo State is the least borrowed. The only major loan we have taken since I assumed office was N25bn bond. Out of that, we have paid more than N20bn, because we are paying N530m every month. As we speak, we have about N5bn left of that loan, which should be liquidated before the end of my tenure.

“So now, you heard of bailouts. Find out what the PDP states are borrowing under the bailout plan, not for development but to pay salaries. But Edo State Government is up to date in salaries without any bailout. So, I mean the media should interrogate facts and not report nincompoops.

“The PDP should simply shut up because they destroyed everything. So, carry out your own independent investigation. Number two, you heard in the papers how much our neighbouring states in the South-South are borrowing – the new PDP governors that have come in. You hear of N20bn, you hear of N30bn in two months. To do what? To settle invisibles, and then you are asking about N14.5bn.

“We are not borrowing to pay salaries, because that we have been able to do. It is part of massive looting by the PDP. So, I appeal to the media; you are all victims of the PDP looting. You must interrogate these thieves. They block the highways and want to divert you away. And when you ask them; they will say you are on witch-hunt. Why won’t you hunt the witches if the witches are killing people? Don’t you hunt a witch in your village? If they confess they have killed a baby, you deal with the witch?

On the 2016 governorship election, he said, “I hear they will come back in 2016 and so on. I am over-sleeping because with a bunch of robbers, (it is) not in our life time. These are people who can only walk; I mean rig election, with a merger of the PDP and the NNPC.

“Now that that merger is broken and the leaders of the merging organisations have been thrown out to make sure that the merger never occurs again. Even if they (the PDP) contest election in their godfather’s home, I defeated them before and I am going to defeat them again. And they can never forgive people like us because whoever destroys the camp of armed robbers, the robbers cannot be happy with him. The only day I will miss my sleep is to hear that Dan Orbih and people like him, who couldn’t pass history, are clapping for me.

But Orbih, in a statement said, “The noise Oshiomhole is making in Abuja is laughable because the APC government that was brought about by the last election, Adams Oshiomhole contributed nothing to it. He lost woefully at the Presidential election in Edo State. This scorecard is a pointer to what is to come in 2016.

To me, this posture of fighting corruption; of lending his voice to the present campaign of anti-corruption is diversionary. And if there is any person that is said to be a corrupt politician, Oshiomhole is number one in the state. I challenge him to tell Edo people what he is doing with N500m to N700m every month in the name of security challenges.

“So, let Adams, before he starts talking about anti-corruption, before he starts pointing fingers at others, first of all purge himself of financial sins to Edo people.”

Oshiomhole tackles PDP over anti-$75m loan comment

Update: Senate approves World Bank loan for Edo

The Senate on Thursday approved the $75 million (N14.7 billion) World Bank loan for the Edo State Government. The request was tabled before the upper legislative body by President Muhammadu Buhari few weeks ago.

oshiomhole

The approval was sequel to the adoption of the report of the Senate’s ad hoc committee on Local and Foreign ‎Debts.

The lawmakers said the approval was in recognition of the fact that the request was part of a N44.1billion ($225million) total credit facility for the state which the Senate had already approved in 2012.

While presenting the report, chairman of the ad hoc committee, Senator Kabiru Gaya, explained that funds from the loan facility will be used to finance key programmes to stimulate internally generated revenue in the state.

It will also be used to develop key infrastructure that will attract private investment and increase employment opportunities.

Gaya said, “It is worthy to note that World Bank normally presents strict criteria for intending borrowing organisation to fulfill as a pre-requisite ‎ to assessing the facility.

“It is gratifying to note that Lagos and Edo States are the only sub national government in Nigeria to meet the stringent conditions of the World Bank to qualify for the Development Policy Operation.

“Edo State has reasonably justified the borrowing and has acceptable debt sustainability level and therefore eligible to borrow.”

Opposition from Senator Uroghede Matthew (PDP, Edo South), who expressed reservations about the loan was could not sway the legislators.

According to him, he had received over 2,000 text messages from his constituents asking that the loan request be rejected.

Senator Matthew argued that Nigeria’s Debt Management Office had ranked Edo State as the 4th most indebted state in the country, stressing that granting the loan would increase the state’s debt burden.

The approval carried an overwhelming voice vote from Senators.

Update: Senate approves World Bank loan for Edo

Breaking: Senate approves Oshiomhole $75m world bank loan

The Senate on Thursday approved the request of President Muhammadu Buhari for a $75m World Bank loan for Edo State.The Senate gave the approval after considering the report of the Senator Kabiru Gaya-led ad-hoc committee which worked on the loan request.

Efforts by the Peoples Democratic Party member representing Edo South, Senator Mathew Urhoghide, to make the Senate reject the request did not succeed.

Details later. . .

Breaking: Senate approves Oshiomhole $75m world bank loan

Senate panel to consider Edo N14.7b loan request

The Senate’s Ad Hoc Committee on Local and Foreign Debt yesterday got the nod to consider President Muhammadu Buhari’s request that the Senate should approve $75 million (N14.7 billion) World Bank loan to Edo State.

oshiomhole

Senate President Abubakar Bukola Saraki constituted the seven-man committee and urged it to consider the request and report to the Senate today.

The members are: Kabiru Gaya (chairman); Buka Abba Ibrahim, David Umoru, Duro Faseyi, Emmanuel Paulker, Samuel Anyanwu and Ibrahim Abdullahi.

President Buhari requested the Senate for approval to enable the state obtain the World Bank loan.

In a letter to the Senate president, which was read on the floor on August 4, President Buhari reminded the lawmakers that the World Bank approved a development policy programme of $225 million to the state in 2012.

It would be implemented in three tranches of $75 million per annum.

He told senators that the first tranche of the loan was approved by the National Assembly in the 2012-2014 Federal Government’s external rolling borrowing plan.

The President said the Edo State government had successfully implemented the Development Policy Operation (DPO) since 2014.

He explained that following this success, the World Bank’s board of directors approved the second tranche, noting that on April 29, 2015, the DPO was also captured in the Federal Government’s external borrowing plan of 2014-2017 pending before the National Assembly.

The President said the request for approval would enable the state consolidate on the gains of the first tranche.

Also, five bills including National Centre for Cancer Research and Treatment Bill 2015, sponsored by Senator Mao Ohuabunwa (PDP Abia North) passed through first reading.

Others that scaled first reading included Nigeria National Petroleum Corporation Act (Amendment) Bill 2015 sponsored by Senator Babajide Omoworare (APC Osun East) and Chartered Institute of Entrepreneurs (Establishment, etc) Bill 2015 by Senator Gobir Ibrahim (APC Sokoto East).

The Forestry Research Institute of Nigeria (Establishment, etc) Bill 2015 sponsored by Senator Uche Ekwunife (PDP Anambra Central) and The Electronic Transaction Bill 2015 by Senator Hope Uzodimma (APC Imo West) passed first reading.

The Senate also considered the request of Mr President for the Confirmation of Mr Abdullahi Kaugama as the Resident Electoral Commissioner (Jigawa State) in the Independent National Electoral Commission (INEC). The Senate referred his confirmation to the Committee of the Whole for further legislative action.

Senate panel to consider Edo N14.7b loan request

Buhari asks Senate to approve N14.7bn World Bank Facility for Edo State

President Muhammadu Buhari on Tuesday asked the Senate to approve a $75 million (about N14.7 billion) World Bank facility for Edo State.

Buhari and Oshiomhole

Senate President, Abubakar Bukola Saraki, read Buhari’s letter requesting the upper chamber to approve the loan for Edo State.

Buhari said the loan is for developmental programme in Edo State.

The Presidential letter is titled: “Request for approval to obtain 75million USD credit facilities from the World Bank for Edo State.”

The President said, “I am writing to seek the consideration from the National Assembly an approval for the request from Edo State government to obtain a 75million dollar credit facility from the World Bank.

“You may wish to know that the World Bank had approved a development policy program for the total sum of 225million dollars to Edo State government in 2012 to be implemented in three tranches of 75millon per annum.

“The first tranche was approved by the National Assembly in the 2012/2014 Federal Government external rolling borrowing plan.

“The Development Progamme Operation (DPO) has since been successfully implemented by the state in 2014.

“Following this success, the bank’s board of executive directors approved the second tranche.

“On April 29 2015, the DPO too was captured in the Federal Government external borrowing plan of 2014/2017 which is pending with the National Assembly.

“It is for the above reason that I seek your favour to facilitate the consideration and approval of the development policy operation 2 loan of $75 million to enable the state to consolidate on the phase of the first tranche of the operation DPO 1.

“Your Excellency, it’s instructive to mention that Edo State has informed me that the key programme objectives of the DPO are already beginning to show in terms of increased inflow of private investment to the state.

“Increased private sector employment opportunities and increased internally generated revenues, an accelerated approval of this request will help to sustain this phase.”

Buhari requested for speedy consideration of the request by the Senate.

Buhari asks Senate to approve N14.7bn World Bank Facility for Edo State

Claims Of Loans Repayment: Rivers State Is Undeniably Bankrupt – PDP

-As Abandoned Projects Litter the State

 Worried over the continued financial recklessness and wrong policies of Gov. Rotimi Amaechi and his aides, the Peoples Democratic Party, PDP, Rivers State chapter, expresses fears over the future of the State.

Rotimi Amaechi

The PDP particularly notes that the claims by the State Commissioner of Finance, Peterside Chamberlain, that the State pays back up to N11 billion monthly to banks to service short-term loans collected by the Amaechi’s administration is alarming, as such financial development, which is a product of their financial wildness, has rendered the State bankrupt, thereby laying rough foundation for the incoming government in the State.

The Party is further disturbed that if to repay the short-term loans stresses the financial base of the State as explained by Amaechi’s aide, what would be the situation in the event of paying off the series of massive long-term loans collected by governor Amaechi in sleek alliance with his Assemblymen.

The PDP says it is also galled in the first place on why the government had to access such monumental loan facilities, when there are enough sources of revenue to the State, including the unimpeded huge monthly allocations from the Federal Government and Shares in banks and multinational companies, as well as other international aids and interventionist programs by world bodies and donor organizations.

It is an undeniable fact that the present financial predicament of the State, as admitted by the Finance Commissioner, was avoidable especially when the development efforts, public facilities and the condition of the people of the State do not confirm the apt utilization of such State resources as well as the huge expenses claimed by the government, stressing that the enormous internally generated revenues and allocation collected by the government during the period do not translate into the development on ground in the State, believing that the Governor and officials of his government misappropriated the funds meant for real development and empowerment of the people.

No doubt, the misappropriation of funds, including wrong budgetary appropriation by Governor Amaechi and his Commissioners is also responsible for the number of projects that have been abandoned and now litter the State.

While assuring that it will not cease in its effort to prevent the imminent financial doom after Amaechi had left office in the State, the Party therefore, calls on the people of the State and relevant anti graft agencies to act fast to save the State from total collapse.

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Claims Of Loans Repayment: Rivers State Is Undeniably Bankrupt – PDP

Federal Government signs agreement with EU on N100bn loan

The Federal Government on Wednesday said it had secured a fresh funding of about N100bn for developmental projects for the next five years under the European Development Fund.

The immediate past Supervising Minister for National Planning but now Minister of State, Finance, Amb Bashir Yuguda, disclosed this in Abuja during his handing over to the newly appointed Minister for National Planning, Dr Abubakar Sulaiman.

Yuguda said the deal was one of the achievements he recorded while at the ministry, adding that he was also able to launch a study for the informal sector of the economy which would enable that sector to be fully integrated into the economy.

He said the agreement, which was sealed in Kenya, would help address some of the challenges that Nigeria was facing in its quest towards achieving its developmental goals.

Yuguda expressed optimism that the incoming minister would be able to leverage on some of the work that he had begun, to contribute significantly to the transformation of the economy.

He said, “We’ve been able to build more relationship with the state governments especially in the joint planning boards on areas of strengthening the planning process of the country.

“We also launched the SEEFOR project with developmental partners to build capacity and also, we have launched the informal sector study of the economy and how they can be integrated in the economy.

“We have also signed the agreement for the 11th European Development Fund which is a little bit over N100bn for the next five years.”

Responding, Sulaiman promised to work with members of staff of the ministry to consolidate on the successes so far recorded by his predecessor.

In doing this, the new minister promised to bring in his experience as an academic towards addressing the challenges facing the country.

He said, “I will work with you to ensure the success of this commission because we have a lot of problems and challenges facing this county and we need to bring out our best to consolidate on the gains left behind by my predecessors and I will need your support to achieve this.”

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Federal Government signs agreement with EU on N100bn loan