The Government of President of Buhari is seeking a fresh $1.2 billion external borrowing from Brazil. The government has said they plan to use the loan to finance agricultural programmes in 2021 budget. And a request has been sent to the National Assembly seeking their approval of the planned loan.
The minister of Finance in the person of Zainab Ahmed, who appeared before the House of Representatives Committee on Finance on Tuesday made this known while she was defending the budget proposed by her office.
According to the finance minister, the Federal Government is planning to acquire 100,000 hectares of land in each state for food production and plans to construct linking roads in such locations to make movement easy for farmers to transport farm produce to market leading to reduction of post-harvest losses.
Reports from the session with the committee has it that, Mr James Faleke, the committee Chairman, asked the the finance minister about economy diversification and she replied thus, “For borrowing to improve industry, we are before the parliament”. She then went on to request the National Assembly to approve the loan she called the Green Imperative Programme, which represents $1.2 billion loan from Brazilian government.
In her word, the finance minister said the Green Imperative Programme is aimed at addressing in whole, agricultural value chain, covering mechanism, production, processing and marketing.
However, this sounds insane as this is coming at a time when Nigeria’s dept is in reds.
According analysis, “Nigeria spent a whopping $1.31 billion to cover external debt obligations in 2019, as external debt service payment accumulated to $3.95 billion in the last 5 years (2015 – 2019). Data obtained from the (@cenbank) reveals”.
I mean, this administration should tell us in clear terms if they actually want to sell the country because, that is what our dept management records are saying and the borrowing seem not to be reflecting in economic growth.
In 2015, Nigeria’s dept servicing was in the tune of $378.9 million. As if that was not yet unfortunate, after five years, Nigeria paid whopping $1.31 billion in 2019 servicing dept. This is unimaginable!
President Buhari signed the budget of 2020 at N10.59 trillion which made it 19.8 % more than 2019 budget. But, out of the N10.59 trillion, N 2. 45 trillion was used to service dept  whereas what the government’s budget for capital expenditure was just N 2.78 trillion. This makes it clear Nigeria cannot continue to accumulate dept.

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