Chief Afe Babalola SAN, a prominent legal figure and founder of Afe Babalola University Ado Ekiti (ABUAD), has raised concerns about President Muhammadu Buhari’s request for the National Assembly’s approval of a new $800 million loan to fund the National Social Safety Network Programme (NSSNP).
Babalola’s criticism of the loan request comes after the President of the Senate, Ahmad Lawan, read the letter containing the request to lawmakers during a Senate session.
Buhari in the letter said, “Please note that the Federal Executive Council approved an additional loan facility to the tune of USD800 million to be secured from the World Bank, for the National Social Safety Net Programme and the need to request for your consideration and approval to ensure early implementation.
“The Senate may wish to note that the programme is intended to expand coverage of shock responsive safety net support among the poor and vulnerable Nigerians. This will assist them in coping with the costs of meeting basic needs.”
Speaking at the Aare Afe Babalola 12th Annual Public Lecture organized by the Nigerian Bar Association (NBA), Ado Ekiti branch held at the ABUAD campus, Babalola expressed disbelieved that President Buhari could be seeking a fresh loan in a country with “undeclared bankruptcy”.
He said he was not expecting the National Assembly to accede to such a request few days to the end of the tenure of the Buhari Administration.
Babalola said, “I do not expect the parliament to accede to that request. How can you be an undeclared bankrupt country and yet be borrowing more money? I do not think that any right thinking person will give us a loan with trillions of Naira debt. I believe and sincerely hope that the National Assembly will not approve it.
“The type of elections being held in the country cannot produce the right people. If we had the right people in the National Assembly they would have instantly turned down the request of President Buhari to borrow $800 million. That is why I am an advocate of a new constitution and I want you (NBA) to join me in that crusade.”
The legal icon’s opposition to the loan suggests that he has reservations about the financial implications and potential consequences of taking on additional debt. Babalola’s perspective underscores the need for careful consideration and transparency in evaluating the impact and sustainability of borrowing for social programs.
As the debate surrounding the loan request unfolds, it is crucial for lawmakers and stakeholders to thoroughly assess its potential benefits, risks, and long-term implications for Nigeria’s economy and the welfare of its citizens.