16 January 2013

Nigeria: Reps Probe NNPC Over U.S.$1.5 Billion Foreign Loan

Photo: Leadership
Oil refinery

The House of Representatives, Wednesday, directed its Committees on Petroleum, Justice, Loans and Debts to investigate an alleged plan by the Nigeria National Petroleum Corporation (NNPC) to take a loan of $1.5 billion to settle their debts.

The House in giving the mandate urged the NNPC to stay action on the process to acquire the loan pending the outcome of the panel's enquiry which rounds off its work in 2 weeks.

The motion to probe the loan deal was moved by Hon. Nnanna Igbokwe (PDP-Imo).

The sponsor of the motion observed that the said loan was neither included in the 2013-2015 Medium Term Expenditure Framework nor the 2013 budget.

He said that section 44 ( 2) a of the Fiscal Responsibility Act prescribed a mandatory condition for borrowing by the Federal government and its agencies.

According to him, the Act also stipulates that government corporations and agencies should prepare and submit to the minister, their schedule of estimates of income and expenditure for the next three years.

Hon. Igbokwe warned that the volume of loan would lead to a financial disaster for the country in the future.

The legislator noted that the collateral for the loan would be crude oil supply which is the collective wealth of all Nigerians.

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