Senate: It’s not a fresh loan, Senate clear air

It was reported earlier that on Tuesday the Senate approved N850 billion loan request sent to them by the President.

These triggered reactions from the general public on the issue of debt the country is in.

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The Sanate has since move to clear that the N850 billion loan is not a fresh loan but a loan request which was sent by the President since.

In a statement on Thursday, Ajibola Basiru, senate spokesman, said the upper legislative chamber only amended its resolution on the request that it had earlier approved.

The amendment was on the money being raised from domestic capital markets instead of the international capital markets – earlier approved as source of the fund, he explained.

“It is very important to make a very important clarification particularly as the widely circulated erroneous report that the Senate approved a fresh loan of N850 billion at the Plenary on Tuesday,” the spokesman said

“That is far from the truth. The resolution passed was an amendment of the earlier resolution as to the source of the initial N850bn that had been approved to be part of what should be used to fund the 2020 Appropriation Act.

“You will recall that the Senate had actually approved the loan of N850 billion but to be sourced from external sources. However, because of the covid-19 Pandemic and of the challenge in the international oil market with the attendant challenges of raising the approved loan externally, the President requested that the approved  should rather be raised through the Domestic Capital Market.

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