Senate President Ahmad Lawan says that the National Assembly will only approve loans whose targeted projects it can ascertain, and that there will be no frivolous support of intents of the executive.
Lawan made the remarks while addressing reporters after a meeting with President Muhammadu Buhari to discuss important national issues at the Presidential Villa, Abuja.
The Senate president said the National Assembly would always do its due diligence before approving any loan request by the executive
He added that after such requests are granted, the National Assembly would also monitor the use of such loans through oversight.
Lawal noted that Nigeria as a poor country can only meet most of its development targets by acquiring loans, since it cannot over-tax its citizens, and public/private partnerships are constrained due to the unfavourable atmosphere across the country.
He said, “Our options are really very limited as a country. First, we don’t have the necessary revenues, Nigeria is poor; we shouldn’t deceive ourselves.
“Nigeria is not rich, given the circumstances we live in, given the challenges we have. Our resources are so low, our revenues are so low and therefore the option of not doing anything, just to sit because we have no money, we shouldn’t go for infrastructure development is not even an option worthy of consideration. You cannot keep the economy stagnant.
“Two, you cannot, in my view and judgment, tax Nigerians further for you to raise the money for infrastructure development. Other countries do that, but we have serious situations across the country, so you cannot put taxes on people.
“The other option is public-private partnership. You need to create the environment to attract investors to come into our country. Because of the security challenges we face today, not many investors would like to come to Nigeria. In fact, even those inside Nigeria may not like to invest properly in this sector of infrastructure development.
“So, the only option left is for us to borrow, borrow responsibly; utilise prudently and economically, and ensure that the projects are self-sustaining so that they can pay back the loans that Nigerian economy will benefit from the implementation of such infrastructure development.”