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Buhari Seeks Senate Approval for $5.5b Loan to Fund 2017 Budget

By Dipo Olowookere

President Muhammadu Buhari on Tuesday, October 10, 2017, sent a letter to the Senate, seeking its approval for a $5.5 billion foreign loan.

The letter, read by the Senate President, Mr Bukola Saraki, on the floor of the Senate today, explained that the loan would be used to fund the 2017 budget deficits.

“Accordingly, the Senate is requested to kindly approve the following external borrowings: Issuance of $2.5 billion 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 $3 billion 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.”

Business Post recalls that two weeks ago, Bloomberg reported plans by the Nigerian government to raise $5.5 billion from the sale of Eurobonds this month to fund the 2017 budget.

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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