President Buhari seeks Senate’s approval for $5.5bn foreign loan

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”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.”

President Muhamadu Buhari
President Muhammadu Buhari/ Photo credit: Punch

The President of the Federal Republic of Nigeria, Muhammadu Buhari has written to the Senate, demanding consent for $5.5bn external borrowings.

The President of the federation sent the request in a letter he wrote to National Assembly and the Senate. As was read by the Senate President, at the plenary on Tuesday 10 2017. According to the President the loan is to enable the Federal Government finance the 2017 Appropriation Act and capital expenditure projects in the Act. The amount $5.5bn was divided into two. $2.5bn is for the financing of the 2017 Appropriation Act and capital expenditure projects in the Act. While $3bn is for refinancing of maturing domestic debts obligations of the Federal Government of Nigeria.

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The letter states as follows “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 these opportunities for funding.”

However, it is not yet clear if the Senate and National Assembly consent to the request or not. Though the President stated that he look forward to receiving approval from the National Assembly and Senate.

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