President Muhammadu Buhari is seeking to borrow another $6.1billion from bilateral and multilateral organisations to fund the deficit in the 2021 budget.
The president, in a letter to both chambers of the National Assembly on Tuesday, asked for their approval to take the fresh loan.
The Deputy Speaker of the House of Representatives, Idris Wase, read the letter from the president during the plenary.
The President of the Senate, Ahmad Lawan, read the letter during the plenary session of the upper legislative chamber on Tuesday.
Using the $1 to N379 exchange rate, the new loan will amount to about N2.343 trillion.
The 2021 budget has a deficit of N5.6trillion.
Mr Buhari disclosed that the National Assembly already approved the borrowing of N4.6 trillion in the 2021 Appropriation Act.
He noted that the new borrowing of N2.3 trillion will part-finance the deficit in the 2021 budget.
“The 2021 Appropriation Act provides for N4,686,775,885,696.00 as New Borrowings (item No. 328) to part-finance the 2021 Fiscal Deficit, of which 50% or N2,343,387,942,848.00 (about USD 6,183,081 ,643.40 at the Budget Exchange Rate of USD1.00/N379) is specified as New External Borrowing,” Mr Buhari’s letter reads in part.
“The allocation of N2.343 trillion to New External Borrowing in the 2021 Appropriation Act is consistent with Nigeria’s Debt Management Strategy, which seeks amongst other objectives, to moderate ‘debt service costs by accessing relatively cheaper external funds, and to free-up space in the domestic market for other borrowers.”
Mr Buhari also said part of the loan will be sourced from International Capital Market (ICM) through the issuance of Eurobonds.
He explained further that Nigeria can now access the ICM, noting that the country is targeting raising a minimum of $3billion from ICM, but not more than the entire $6.1billion.
Credit: premiumtimesng.com
The post Buhari seeks NASS approval to take another $6.1 billion loan appeared first on The Chronicle Online.
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