Senate Okays $1bn For Arms Purchase
The Senate has approved a loan of 1 billion U.S.Dollars for the Presidency to procure arms and equipment needed to eliminate Boko Haram terrorism.
According to reports by TheNation, this was not an unanimous decision. Such an approval divided the Senate.
Punch reports with reference to the Chairman, Senator Ahmed Makarfi, that the loan request was not in cash but supply of military hardware to be paid for, adding:
"Also, the request is for a ceiling of $1bn and not that, at the moment, the whole amount would be utilised. Government will procure on the terms stated, based on needs assessment of our security agencies."
Senate minority argued however that the loan request contradicted the Appropriation Act, and Fiscal Responsibility Act saying that the request should have been made by means of a supplementary appropriation bill.
Malarfi characterized the opposing claims as irrelevant because the loan was not in cash.
It would be noted that the total size of Nigeria's budget for defence and security in 2014 was put at N938bn.
However, in July 2014 President Jonathan made an inquiry for an external loan of $1bn (roughly N163.57bn). The leader of the country explained the move by the need to upgrade military equipment, training and logistics of the armed forces and security services in order to boost their capabilities of the war against terrorism.
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However, the National Assembly were not able to approve the loan before the annual recess, but fulfilled the presidential request shortly upon resumption.
Source: Legit.ng
