BREAKING: Buhari asks Senate to approval fresh $4bn, €710m loans

Uche EmmanuelSeptember 14, 2021

1 minute read

Nigeria’s President, Muhammadu Buhari has sent a letter to the Nigerian Senate requesting $4 billion and €710 million external loans for approval, despite public outcry over incessant borrowing by the current administration.

This was disclosed on Tuesday, as the Senate President, Ahmed Lawan read the letter from the presidency requesting approval.

According to the president, the proposed loan would be financed through sovereign loans from the World Bank, French Development Agency, EXIM Bank and IFAD.

Buhari noted that the loan if approved would enable the Federal Government to fund critical infrastructural projects in different sectors across the country.

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.

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“The distinguished Senate President may recall that we 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 FEC 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.”

Last May, Mr Buhari requested a loan to finance the N5.6 trillion 2021 budget deficit, as it looks to execute crucial infrastructural projects bordering on transportation, health, education, etc.

The Senate had also in April approved $1.5 billion and €995 million external borrowings which were part of the $5.5 billion and €995 million external borrowings sought for by the president in May last year.

The president has explained that the funds were to be used to finance some government projects and assist some states financially.

According to the Nigerian Domestic and Foreign Debt Report, published this year by the National Bureau of Statistics (NBS), the country’s total public debt as of September 2020, is N32.2 trillion ($84.57 billion).