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The Senate had on Tuesday, November 1, 2016, rejected Buhari’s request for approval to borrow $29.9b.
According to Punch, the South-East APC said the funds will help bring Nigeria out of recession.
The Publicity Secretary, Hyancinth Ngwu also reportedly criticised the Senate for rejecting the President’s request.
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The party also said “The All Progressives Congress in the South-East geopolitical zone has appealed to the members of the Senate of the Federal Republic of Nigeria to rescind their rejection of the $29.680bn loan planned for the three fiscal years of 2016-2018.
“The rejection of the request by the Senate is ill-advised and an ill wind that blows no one any good
“We believe that the loan, which is within the acceptable Debt Management Office debt threshold of 19.39 per cent for External Debt/GDP ratio and far less below 56.0 per cent debt threshold for External Debt/GDP ratio by the World Bank’s, Country Policy and Institutional Assessment for countries in Nigeria’s peer-group, respectively, is sustainable in the medium term.”
Adding that “We also believe that the only quick way out of the present economic recession, which has thrown the masses into untold hardship and weakened all productive sectors of the economy, is by massive spending by the government.
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“And with the fall in oil production and its price, the only rational way for government to raise enough fund to exit the economy from recession is through external borrowing which has the advantage of long maturity profile, very little interest rate and creates large space for domestic borrowing by the private sector participants.”
The Minister of Information and Culture, Lai Mohammed, also revealed that President Buhari will present a well detailed letter to the Senate again.
![Amb. Michael Freeman donating water machines at the Ministry of Foreign Affairs on Friday in Abuja [NAN]](data:image/svg+xml;charset=utf8,%3Csvg%20xmlns%3D'http%3A%2F%2Fwww.w3.org%2F2000%2Fsvg'%20width%3D'300'%20height%3D'172'%20data-ring-placeholder%3D'1'%3E%3C%2Fsvg%3E "Amb. Michael Freeman donating water machines at the Ministry of Foreign Affairs on Friday in Abuja [NAN]")