Daily Trust (Abuja)

17 January 2013

Nigeria: Reps Probes NNPC's U.S.$1.5 Billion Loan

Photo: Leadership
Oil refinery

The House of Representatives has mandated its Joint Committee on Loans and Debts, Justice, Petroleum Downstream and Upstream to investigate an alleged plan by the NNPC to obtain a syndicated loan of 1.5 billion dollars to pay its debt.

Adopting a motion on matters of urgent public importance sponsored by Rep. Raphael Nnanna Igbokwe (PDP, Imo), the House mandated the committee to investigate and report back within 14 days.

In his motion, Igbokwe noted that the said loan was neither captured in the 2013 appropriation bill nor was it reflected in the 2013-2015 Medium Term Expenditure Frame work as passed by the National Assembly.

"Section44 subsection 2a of the Fiscal Responsibility Act prescribe as a mandatory condition that government in the federation and it's agencies and corporations desirous of borrowing shall show the existence of prior authorization in the appropriation or other Law for purpose for which the borrowing is to be utilized," Igbokwe argued.

He said that securing the loan will plunge the nation into greater indebtedness. The motion was unanimously adopted.

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InFocus

Nigeria Halts U.S.$1.5 Billion Loan Proposal

Oil refinery

The House of Representatives has ordered the Nigerian National Petroleum Corporation to stop plans to obtain a syndicated loan of U.S.$1.5 billion dollars to pay its debt. Read more »