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Buhari Seeks Approval to Borrow $2.8b for 2018 Budget

By Dipo Olowookere

President Muhammadu Buhari on Tuesday, October 9, 2018, wrote a letter to the Senate, seeking its approval to borrow $2.8 billion from the international capital market.

This information was made known today by the Senate President, Mr Bukola Saraki, who read the letter to his colleagues.

According to the letter from the President, the money is mainly to fund part of the 2018 national budget, which was signed into law on June 20, 2018.

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The Senate resumed on Tuesday after suspending plenary on Tuesday, July 24, 2018 to embark on its annual recess.

At the resumption today, the Senate President informed his colleagues that the President wants the resolutions of the National Assembly for the implementation of the new external capital raising of $2.786 billion from the international capital market approved in the 2018 appropriation act.

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Also, the Senate President said Mr Buhari wants an additional external capital raising of $82.54 million to refinance the balance of $500 million matured Eurobond in the international capital market.

Business Post reports that the Debt Management Office (DMO) had planned to raise the $2.8 billion in the outgone third quarter of 2018, but the recess embarked upon by the National Assembly killed the plan.

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If the parliament gives the President the nod to obtain the $2.8 billion loan through Eurobond, the debt office may carry out the exercise before the end of this year.

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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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