Buhari Seeks NASS Approval To Borrow Fresh $4bn, €710m Loans
President Muhammadu Buhari is seeking the approval of National Assembly to borrow another $4 billion ($4,054,476,863) and €710 million loans from bilateral and multilateral organisations to fund the deficit in 2021 budget.
Buhari is also seeking the nation’s legislature’s approval for grant components of $125 million in the 2018-2020 external rolling borrowing plan.
The president, in a letter to the Senate, said the loan request is an addendum to the 2018-2020 borrowing plan.
The development is contained in a letter addressed to both chambers of the National Assembly and read on the floor at the resumption of plenary by the presiding officers on Tuesday.
Buhari also explained that the need to borrow more funds is to meet the “emerging needs” of some “critical projects.”
Part of the letter reads;
I write on the above subject and submit the attached addendum to the proposed 2018-2020 external rolling borrowing plan for the consideration and concurrent approval of the senate for the same to become effective.
The distinguished Senate President may recall that I submitted a request on 2018-2020 borrowing plan for the approval of the senate in May 2021.
However, in view of other emerging needs and to ensure that all critical projects approved by Federal Executive Council as of June 2021 are incorporated, I hereby forward an addendum to the proposed borrowing plan.
The projects listed in the external borrowing plan are to be financed through sovereign loans from the World Bank, French Development Agency, EXIM Bank and IFAD in the total sum of $4,054,476,863 and €710 million and grant components of $125 million.
The president said the loans, when obtained, will stimulate the economy and create job employment.
His recent loan request comes barely two months after the National Assembly approved his earlier request to borrow $8.3 billion and €490 million loans contained in the initial 2018-2020 borrowing plan.
The lawmakers had said the needed funds were meant for projects geared towards the realisation of Nigerian Economic Sustainability Plan that cut across key sectors such as infrastructure, health, agriculture and food security, energy, COVID-19, among others