Chairman, Senate Committee on Finance, Sen Olamilekan Adeola, on Thursday, said the plan by the Buhari government to borrow about 30 billion dollars and debate approval was a necessary step to catalyse development.
Adeola made the statement in Lagos while speaking with newsmen.
“The 30 billion dollar loan the Federal Government is sourcing for is not one of those frivolous loans; this is a loan that is tied to projects”, he said.
”This loan is needed to fund landmark and ambitious projects such as the Lagos-Ibadan Expressway, the East West Road, the Second Niger Bridge, among others.
”We need a large chunk of money to get all these projects completed . So, it is only if government access this loan that we can give all these great projects the right direction.
”Again, the government needs this loan to execute those projects that would impact and transform the economy and put the country on the path of progress. So, the loan is necessary,” he said.
The senator said the country was faced with serious infrastructural deficit that would be substantially reduced with government accessing the loan.
He said the return of the budget cycle to January to December would significantly promote the development of the country.
”The economy is moving in the right direction; the economy is blossoming.
”We in the ninth assembly just succeeded in returning the budget cycle to January to December, and with this, we have ensured all that needs to be done in a calendar year can be achieved.
”There is no more haphazard budget implementation; we now have a full year budget implementation which runs from January to December,” he said.
He said the National Assembly had amended the Public Procurement Act to increase the mobilisation for contracts from 15 per cent to 30 per cent.