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House of Representatives postpones President Buhari’s $22.79 billion loan request indefinitely

The House of Representatives has postponed President Muhammadu Buhari’s request to borrow $22.79 billion indefinitely.

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President Muhammadu Buhari’s plan to borrow $22.79 billion has hit a brick wall as the House of Representatives has postponed the consideration of the loan request indefinitely, days after the Senate announced its approval.

The Speaker of the House of Representatives, Femi Gbajabiamila, had said that President Buhari’s loan request would be considered on Wednesday, but yesterday, he directed that the consideration be suspended as it would not be on the order of proceedings.

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The postponement is until further notice as Gbajabiamila did not give a date to deliberate on the loan request.

“We will step that down for today,” he said, as the House had listed the report by its Committee on Aids, Loans and Debt Management on the 2016–2018 Federal Government External Borrowing (Rolling) Plan as the last item for consideration.

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The Senate had also disagreed over the approval after Senator Adamu Aliero (Kebbi Central) pushed for a postponement of the consideration to another legislative day, but the Senate President did not agree with that.

He explained that such a postponement would be counterproductive as the findings and recommendations of the report would have already been debated in the media before the consideration. He advised that the report be considered to forestall such eventuality.

[READ MORE: LCCI tasks FG to explore equity financing as an option to cravings for loan)

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Recall that this loan request was previously rejected by the 8th Senate under Bukola Saraki’s leadership. This was due to the fact that there was no detail in the document which held the request. But last December, Buhari presented the loan request of $29.96 billion again but it was reduced to $22.7 billion, with claims that the 8th National Assembly had already approved about $6 billion out of the money.

Who will fund Nigeria’s $22.79bn loan? According to the Senate panel, the funding agencies for the loan are the:

  • Japan International Cooperation Agency ($200,000,000);
  • German Development Bank ($200,000,000);
  • China-Exim Bank ($17,065,496,773); and
  • French Development Agency ($480,000,000).

The loan will be used to fund critical infrastructure projects under the 2016–2018 External Borrowing Plan like the Nigeria Electricity Transmission and Access Project ($364,000,000); Social Inclusion and Welfare Advancement project, renamed National Social Safety Net Project, ($500,000) and the Economic Reforms and Governance Project, renamed Fiscal Governance Project ($200,000,000).

Olalekan is a certified media practitioner from the Nigerian Institute of Journalism (NIJ). In the era of media convergence, Olalekan is a valuable asset, with ability to curate and broadcast news. His zeal to write was developed out of passion to shape people’s thought and opinion; serving as a guideline for their daily lives. Contact for tips: [email protected]

2 Comments

2 Comments

  1. Ebelenna

    October 24, 2020 at 1:09 pm

    Nigeria government is replete with endemic history of overspending, frivolous spending and exaggerated salaries to the folks in power. When a corrupt or inefficient government takes a loan, who pays the loan? Buhari government is supposed to be the best government since Nigeria Independence.I think it is too late for this government to take a loan. They don’t have enough time to execute the projects talk-less paying the debt. Unless the intention is to sell and resell Nigerians living and unborn into perpetual slavery. What stops this government to decentralize power and allow the states to work independently. Nigerian is too big. No central power can comprehend it. It is not possible even if he is an economic wizard. Federalism is the only way forward this country can create wealth.

    • Won Imoterhemba

      October 28, 2020 at 11:22 am

      Our leaders have already sold this country oo, look at the amount of money they have already borrowed and they are still planning to collect another loan
      Wel, i blamed my mother for not being a prostitute
      She would have given birth to me in another country not a corrupted country like Nigeria

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Energy

Nigeria now generates 13,000mw of power – Minister of Power

Nigeria’s installed grid power generation capacity has increased from 8,000mw to 13,000mw under President Muhammadu Buhari.

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FG set to create at least 5 million jobs for youths in the power sector – Minister of Power , Consortium of Western investors to inject upwards of $5 billion in Nigeria's renewable energy sector, Power: Nigeria's deal with Siemens - the birth of a new era?

Minister of Power, Engineer Sale Mamman, disclosed that Nigeria’s installed grid power generation capacity has increased from 8,000mw to 13,000mw under the leadership of President Muhammadu Buhari.

This was stated by the Minister during the 2021 budget defence, before the House of Representatives Committee on Power in Abuja, as reported on the Twitter handle of  the Office of the Minister of Power today.

 

However, members of the committee raised concerns about power supply to their various constituencies, urging the minister to ensure adequate supply.

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The Minister explained that the distribution system had the capacity to evacuate 5,500mw of power, which is a significant improvement from 4,500mw in 2015, and that better performance should be expected in the near term.

Engr. Aliyu Magaji (APC-Jigawa), the Chairman of the committee, asked the Minister to mete out stiffer sanctions to the Distribution Companies (DisCos), to make them to sit up and provide the desired services to Nigerian people.

Magaji said that if the minister ensured the sanction of the DisCos, he would become the darling of lawmakers and the entire Nigerians.

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What they are saying

On the performance of the Ministry since 2015, Engineer Mamman said:

During the period between 2015 to date, the sector has recorded successes and has faced challenges. In order to deliver this administration’s promise of providing stable and affordable power to Nigerians, a way forward was defined and supported by Mr. President’s political will.

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ENDSARS

Desmond Elliot apologises for addressing the youths as “Children”

Elliot apologised and allegedly broke down in tears on Live TV for addressing #EndSARS protesters as children.

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Desmond Elliot, a member of the Lagos State House of Assembly, apologised and allegedly broke down in tears on live TV for addressing #EndSARS protesters as “Children.”

The lawmaker disclosed this in a statement he issued via his Twitter handle and on a live TV interview on Thursday.

Elliot explained that he was carried away by his emotions, which was the reason he used such a word to describe the protesters on the floor of the house.

He tweeted, “I have read your honest feedback& suggestions& [sic] I sincerely apologize for addressing the youths as ‘Children.’

“I did not mean to be insensitive with this, it was borne out of the magnitude of destruction&looting [sic] of businesses I witnessed when I went on a tour of my constituency.

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“I saw women crying and my constituent members distraught as a result of the damages inflicted on their source of livelihood. I was moved by this while giving my submission on the floor of the House.

“I allowed my emotions get the better of me and for this I apologize to everyone my earlier statements may have hurt.”

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What you should know

The lawmaker, who is also a film maker, in his submission at the House on Thursday, allegedly pushed for the passing of a social media regulation bill.

His controversial statement received lots of criticisms, as many Nigerian youths attacked him for referring to youths as “children” and for also pushing for the regulation of social media.

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Tech News

Edlyft raises over $1.4 million venture capital during pandemic

Edlyft raised over $1.4 million in venture funding from a number of investors.

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Edlyft, an EdTech startup, has so far raised over $1.4 million in venture funding from a number of investors.

The investors include Kleiner Perkins, Y Combinator, Kapor Capital, Village Global VC, January Ventures, and Backstage Capital. Also, funding came from some respectable entrepreneurs such as Jeff Weiner (former CEO, now Executive Chairman of LinkedIn).

It is practically impossible to run a business without capital, and sometimes, it is difficult to raise funds if the business is not well managed or successful.

Therefore, a balance must be struck; just as businesses strive to raise more funds for different purposes such as expansion, they must also strive to remain profitable.

Commenting on the latest development, one of the co-founders of the group, Erika Hairston told Forbes:

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We started our post-demo-day fundraise in the final weeks of Y Combinator’s winter 2020 batch. Given that Black women receive only 0.06% of venture funding, I had a determined mindset; yet no one could’ve predicted the challenges of rising at the peak of uncertainty across the globe.

“I remained optimistic however because due to pandemic and children and young people not being able to go to schools and universities, our work only became that much more needed in the world.”

She added, “Initially, it felt impossible to build new relationships with institutional funds who didn’t already know us or who weren’t focusing only on their portfolio. As the world adjusted to fully remote, so did we and the investor community. One of the fun facts about our fundraising journey is that 10% of our investors came solely from introductions over Twitter.

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What you should know

Edlyft is a paid support platform that helps college students and adult learners through CS courses, by pairing them with inclusive mentors, online group tutoring, and tools for navigating complex subjects.

Venture capital is a form of private equity and a type of financing that investors provide to startup companies and small businesses that are believed to have long-term growth potential.

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