Abuja(AN24)-The Nigerian Senate Tuesday, approved President Muhammadu Buhari’s request to borrow $5.5bn foreign loan.
The approval followed the adoption of a report by the Senate Committee on Local and Foreign Debts at the plenary on Tuesday.
Buhari had written a letter on October 4, 2017 to the Upper Chamber of the National Assembly seeking the external borrowings, which he said that had been captured in the 2017 Appropriation Act, which has a deficit of N2.356tn and provision for new borrowings of N2.321tn.
The letter reads in part, “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 this opportunities for funding.”