ECONOMY: AMAECHI CALLS FOR SUPPORT FOR $30B LOAN BY GOVT

Just a few hours ago, the federal government has called on Nigerians to help prevail on the Senate to approve President Muhammadu Buhari’s $30 billion loan proposal which he submitted on Tuesday, October 25th, 2016.

While this has been a debate at the National Assembly for Months now, calling on Nigerians to be a part of it may not be a good idea either.

Minister of Transportation, Hon. Rotimi Amaechi, made the call at the North Central edition of the Town Hall meeting organized by the Ministry of Information and Culture in Ilorin, Kwara State.

According to him, “China has already approved the loan, the only thing limiting us is the refusal of the National Assembly to approve the plan.

Thereby, he called on Nigerians sayings: “As citizens of Nigeria in the North Central, please help us ask the National Assembly to approve the plan.”

Buhari who wrote to the legislative through  the Senate President Bukola Saraki and Speaker of the House of Representatives, Yakubu Dogara, also   requested for virement of N180.8 billion in the 2016 budget for provision of needed votes for some critical sectors across the 36 states of the federation and the FCT.

Among other targeted projects mentioned by the president in his letter are infrastructure, agriculture, health, education, water supply and employment generation, thus the need for the loan.

He stated:

“This is in addition to the inability of our annual budgetary provisions to bridge the deficit. It has become necessary to resort to prudent external borrowing to bridge the financing gap. This will largely be applied to key infrastructure projects namely power, railway and roads among others.”

Now, note that while this loan is supposed to augment the country’s 2017 budget, this year’s budget is the largest in the history of Nigeria.

The sum of N7.298 trillion has been proposed as the 2017 budget with key capital spending provision to include:

1. Power, Works and Housing: N529billion;

2. Transportation: N262 billion;

3. Special Intervention Programmes: N150 billion.

4. Defence: N140 billion;

5. Water Resources: N85 billion;

6. Industry, Trade and Investment: N81 billion;

7. Interior: N63 billion;

8. Education N50 billion

9. Universal Basic Education Commission: N92 billion

10. Health: N51 billion

11. Federal Capital Territory: N37 billion;

12. Niger Delta Ministry: N33 billion; and

13. Niger Delta Development Commission: N61 billion

Given this scenario, why should the federal government ask for a loan when this year’s budget is supposed to cover up every aspect of the country’s economy when managed proper?

Instead of Nigerians prevailing on the Senate to approve the proposed loan, they should use such energy into ensuring that the 2017 budget is been approved on time so that needful projects could as well be executed as when due.

Again, while this administration talks about getting more loans, Nigerians should be asking questions as to whereabouts the country’s recovered loots since the resumption of Buhari into power.

Find part of the documented recovered loots below:

Serial Items Naira US Dollar GB Pounds Euro
1 EFCC Cash at hand 39,169,911,023.00 128,494,076.66 2,355 11,250

2 Royalty/tax/payment to FGN account in JP Morgan account New York 4,642,958,711.48 40,727,253.65

3 ONSA Funds Recovery Account in CBN 5,665,305,527.41 8,000,000.00

4 VAT recovered from companies by ONSA 529,588,293.47

5 EFCC Recovered Funds Account in CBN 19,267,730,359.36 455,253.80

6 ICPC Revenue Collection Recovery in CBN 869,957,444.89

7 Office of the Attorney General 5,500,000,000 5,500,000

8 DSS Recoveries 47,707,000.5 1,943,000.5 3,506,000.46

9 ICPC Cash Asset Recovery 2,632,196,271.71

Total : 78,325,354,631.82 185,119,584.61 3,508,355.46 11,250

Recoveries Under Interim Forfeiture

Serial Items Naira US Dollar GB Pounds Euro

1 Cash in bank under interim forfeiture 8,281,577,243.92 1,819,866,364.73 3,800.00 113,399.17

2 Amount frozen in bank 48,159,179,518.90 7,131,369,498.49 605,647.55

3 Value of properties under interim forfeiture 41,534,605,998.00 77,844,600.00 1,875,000.00 190,000.00

4 Value of cars under interim forfeiture 52,500,000.00

5 ONSA Funds under interim forfeiture 27,001,464,125.20 43,771,433.73

6 Value of Assets Recovered by ONSA 512,000,000.00

7 ONSA Assets under interim forfeiture 260,000,000.00

8 DSS Recoveries Frozen in Banks 658,929,000.00 226,476.20

9 EFCC Cash in Bank under final forfeiture 103,225,209.41 17,165,547.00

Total :126,563,481,095.43 9,090,243,920.15 2,484,447.55 303,399.17

Grand Total: 204,888,835,727.25 9,275,363,504.76 5,992,803.01 314,649.17

Now, instead of trying to drag the country’s economy down by collecting loan, this administration should be thinking of how to use this year’s budget together with our recovered loots to stabilize the country’s economy.

Culled from The Sheet