Senate approves Buhari’s request to borrow $5.5bn

Senate during 1999 Constitution amendment

Senate today approved the $5.5 billion external loan requested by President Muhammadu Buhari to finance Federal Government projects.

The move to borrow the borrowing was approved at the plenary after the adoption of report the report by Senate Committee on Foreign and Local Debts

Recall how the borrowing had generated controversy from some quarters who objected based on the fact that they could not see the impact of previous borrowings by the government and so this would not be an exemption.

READ: $5.5b loan: FG mortgaging our future, says Arewa Youths, Youths threaten mass protest over $5.5b loan

 

According to Buhari’s letter on October 4, 2017, the external borrowing was captured in the 2017 budget which has a deficit of N2.35 trillion out of which N2.321 trillion is to be borrowed.

The letter had read: “Accordingly, the Senate is requested to kindly approve the following external borrowings: Issuance of $2.5bn in International Capital Market through Eurobonds or a combination of Eurobonds and Diaspora bonds for the financing of the Federal Government of Nigeria’s 2017 Appropriation Act and capital expenditure projects in the Act.

“Issuance of Eurobond in the ICM and/or loans syndication by the banks in the sum of $3bn for refinancing of maturing domestic debts obligations of the Federal Government of Nigeria, while looking forward to the timely approval of the National Assembly to enable Nigerians to take advantage of this opportunities for funding.”

Meanwhile, the $5.5 billion external borrowing is a long term loan that will take between 5 and 30 for Nigerian Government to repay

 

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