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Thu, Mar

$30bn Loan: Why Senate Had To Approve It – Adeola

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The Chairman Senate Committee on Finance, Senator Olamilekan Adeola has on Thursday cleared the air on why the red chamber deemed it fit to approve the $30 billion loan for the federal government.

Adeola while speaking to newsmen in Lagos said, the plan by the Buhari administration to borrow such loans was a necessary step because the loan will be used to catalyse development in infrastructure.

 

In his statement, ‘the $30 billion dollar loan the Federal Government is sourcing for is not one of those frivolous loans; this is loan that is tied to projects”.

 

He added, the loan was necessary to fund the infrastructure such as the Lagos-Ibadan Expressway, the East-West road, the second Niger Bridge and so on.

 

Adeola further explained that the Federal Government needed a chunk of money to get these work done, saying this would only be possible if the government can access this loan that we are sure of completing the said projects before this government rounds up.

 

The Senator said, gingering the economy and setting it on the right path is what the Nigerians require to set development in the right direction, therefore, approving the loan was necessary.

 

He revealed that now Nigeria is facing the infrastructural deficit, accessing the loan would enable government to handle those projects and give it a befitting touch.

 

The Senator commended his colleagues for returning the budget cycle to January to December cycle, saying that was a good step in the right direction for the country’s development.

 

”The economy is moving in the right direction; the economy is blossoming.

 

He assured that with this, there will be no haphazard implementation of the budget which runs from January to December.

 

He added the National Assembly has amended the public procurement act to increase mobilization for contracts from 15% to 30%.

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