President Goodluck Jonathan’s plan to borrow about $7.905 billion (aboutN1.23 trillion) from external sources, was yesterday lampooned by the Senate, as the lawmakers reasoned that there was no justification for taking such a large loan.
The move was not only described as a debt trap for Nigeria and its future growth, some of the Senators also expressed reservations that the said money might not be channelled into what it was meant for.
The lawmakers, who did not hide their displeasure with government’s plans to borrow from the foreign financial institutions, however, warned that if the loan was approved, it must be properly monitored and judiciously used as directed by the executive.
It was, however, referred to the Senate Committees on Finance, Local and Foreign Debts to report back in the next one week for consideration.
The loan if approved, will see the Federal Government spending the money on power projects, housing, water, education and erosion control.