The Senate has committed the request of President Muhammadu Buhari seeking approval for $75million (N14.7billion) credit facility from the World Bank for Edo State Government to the Standing Committee on Local and Foreign Debts when constituted.
This comes as the Senator representing Edo Central, Clifford Odia, has faulted the request on the grounds that it will plunge the state into further indebtedness.
The amount is part of N44.1 billion ($225m) the World Bank has granted the state as loan.
A letter sent by Buhari to the Senate and read on the floor by senate president, Bukola Saraki at Tuesday’s plenary, explained that the loan was the second tranche of a sum of $225 million already approved by the bank, as the 7th Senate approved the first tranche of $75 million in 2012.
Buhari said that reports from the state indicated that the programme was already yielding results in terms of private sector investment, increased revenue and employment opportunities.
But speaking after Wednesday’s plenary, Odia argued that there is nothing on ground in the state to show that funds from previous borrowings have been properly utilized.
The Senate, he advised, needs to verify if the first loan collected by the state was judiciously utilised.
He noted that if the loan is approved, it will incur expenses for the incoming government in 2016, noting that the state is groaning under financial burden and has been unable to pay workers for some months now.
Figures obtained from the Debt Management Office indicated that States and Federal Governments’ External Debt Stock as of 31st December, 2014 stood at $9.711bn, with Edo State having an External Debt Profile of $123.128million.
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