Amid the controversy of the leaked memo by Nigeria’s minister of state for petroleum resources, Ibe Kachikwu, alleging award of $26 billion contracts by the Nigerian National Petroleum Corporation (NNPC) without due process, President Buhari has formally written to the National Assembly, requesting approval for an external loans of $6.5 billion.
The president said the loans are to be used in financing the 2017 Appropriation Act. The letter was read by Senate President, Bukola Saraki, during plenary on Tuesday.
The letter said the loan will be sourced through the issuance of Euro and Diaspora bonds.
According to the letter, the loans will be used to fund capital projects such as the construction of Mabila power project in Taraba State, construction of the second runway of Abuja Airport and other major projects across the country. It will also be used to refinance local debts, local debts.
For ordinary Nigerians, this comes as a shock following the allegation by minister of state for petroleum that $26billion has been wasted by the NNPC in bogus contracts that were awarded without due process.
President Buhari has maintained an undignified silence over Kachikwu’s allegations.
He has also refused to order a probe of such weighty accusation, coming from honourable minister.
Dr Kachikwu, in a leaked memo to the president, had raised alarm over new decay in the NNPC and the award of $25billion contact by the Group Managing Director (GMD), Maikanti Baru without due process and how the GMD, in insubordination, has been sidelining him and other members of the NNPC board.