Nigeria’s President Muhammadu Buhari has asked the Senate to approve a fresh external loan of N2.3trillion ($6.183bn).
Mr Buhari made his request known in a letter addressed to the Senate President, Ahmad Lawan, and read at plenary on Tuesday.
The Nigerian leader said the proposed loan will be channelled towards financing the 2021 budget deficit of N5.6 trillion and will also enable the Federal Government to fund critical infrastructural projects in transportation, health, and education among others.
“I wish to bring to the attention of the president of the senate that the plan is to raise the sum of USD6.183 billion from a combination of sources; namely: multilateral and bilateral lenders, as well as the International Capital Market (ICM) through the issuance of Eurobonds,” President Buhari said in the letter to the senate.
“From the recent trends in the ICM, it is now possible for Nigeria to raise funds in the ICM, and this explains why we are proposing that the new external borrowing in the 2021 Appropriation Act should include issuing Eurobonds in the ICM.
“We estimate that Nigeria may be able to raise USD 3billion or more, but not more than USD6.183 billion (the amount provided in the 2021 Appropriation Act) in a combination of tenures between 5-30 years; the outcome would, however, be determined when Nigeria approaches the market.”
The request of the Nigerian leader comes just a month after the Senate approved the sum of $1.5bn and €995 million external borrowings for the Federal Government.
By Abel Ejikeme
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. Mr Buhari made his request known in a letter addressed to the Senate President, Ahmad Lawan, and read</p>
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