Mixed Reactions as Senate Approves $75 Million World Bank Loan for Edo State

The Nigerian Senate has today, August 13th, approved the $75 million dollar loan from World Bank for Edo State’s Development Policy Operation (DPO).

 

It would be recalled that President Buhari had previously written to the Senate requesting the approval of the upper chamber to obtain the credit facility from the World Bank for Edo State.

“I am writing to seek the consideration of the national assembly of Nigeria on approval of a request by the Edo state government‎ to obtain a $75 million credit facility from the World Bank,” the president wrote in a letter read on the floor of the upper chamber by Bukola Saraki.

The approval followed the consideration of a single-prayer report of the ad hoc Committee on Local and Foreign Debt presented by Sen. Kabiru Gaya (APC Kano South). The committee in its report urged the Senate to approve the loan, stating that the World Bank had already considered the state ready for it.

While supporting the motion for the approval of the loan, the Leader of the Senate, Ali Ndume,  encouraged other states with genuine needs to take advantage of such low interest loans, rather than the patronising commercial banks.

“The first tranche of this borrowing plan had already been approved by the senate and the World Bank has strict borrowing conditions– which the state has met. I therefore move that we approve this loan,” he said.

Sen. Matthew Urhoghide (PDP Edo South) while supporting the approval of the loan, said that on the day the Senate received the letter from Mr President, he got over 2000 text messages and emails; 'out rightly, the people have said that they do not want the loan.'

He argued that although the loans would bring about more gains for the people of the state, there was need to accede to the yearnings of the Edo people and verify the misgivings expressed by the people of the state. The senator said that the first tranche of the loan was used for projects that were not visible, and urged that the second tranche should be judiciously utilized to clear the doubts of the people.

The senate, however, approved the loan though with a tangible number of dissenting voices. The $75 million loan is the second tranche of a $225 million Development Policy Operation loan approved for the state by the World Bank.