Buhari Seeks Senate Approval To Raise $5.5bn Foreign Loans To Fund Budget

Nigeria’s President Muhammadu Buhari has written to the National Assembly seeking approval to raise a total of $5.5 billion from external borrowings to fund part of this year’s budget deficit.
The letter, which was read on the floor of the Senate on Tuesday by Senate President, Bukola Saraki indicated that the government sought to borrow via Eurobond, diaspora bond and other means favourable.
“Accordingly, the Senate is requested to kindly approve the following external borrowings: Issuance of $2.5 billion in International Capital Market (ICM) 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,” Saraki quoted from the president letter..
The government plans to issue 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.
Africa’s top economy total external debt at the end of June this year stood at $15.04 billion, while the domestic portion stood at $39.33 billion.
Nigeria has projected a total budget outlay of N7.44 trillion for this year with the deficit component stood at N2.36 trillion.
It said it plans to borrow half of the deficit through external borrowing and balance from the domestic debt market.

Leave a Reply

Your email address will not be published. Required fields are marked *