Barely two months after the National Assembly approved his earlier request to borrow $8.3 billion and €490 million loans contained in the initial 2018-2020 borrowing plan, President Muhammadu Buhari is seeking the approval of the National Assembly to borrow another $4 billion ($4,054,476,863) and €710 million loan from bilateral and multilateral organisations to fund the deficit in the 2021 budget.
In a letter to the Senate, the President noted that the loan request is an addendum to the 2018-2020 borrowing plan.
The nation’s leader also asked the lawmakers to approve grant components of $125 million.
Senate President Ahmad Lawan, read the President’s request which was contained in a letter at the start of plenary on Tuesday.
According to the Buhari, the need to borrow more funds is to meet “emerging needs” of some “critical projects.”
In part, the letter read “I write on the above subject and submit the attached addendum to the proposed 2018-2020 external rolling borrowing plan for the consideration and concurrent approval of the senate for the same to become effective.
“The distinguished senate president may recall that u submitted a request on 2018-2020 borrowing plan for the approval of the senate in May 2021.
“However, in view of other emerging needs and to ensure that all critical projects approved by FEC as of June 2021 are incorporated, I hereby forward an addendum to the proposed borrowing plan.
“The projects listed in the external borrowing plan are to be financed through sovereign loans from the World Bank, French Development Agency, EXIM Bank and IFAD in the total sum of $4,054,476,863 and €710 million and grant components of $125 million”.
Also, the African giant’s leader clarified that the loans, when obtained, will stimulate the economy and create job employment.
It is important to note that with the current $1 to N550 exchange rate, the new loan of $4 billion will amount to about N2.2 trillion.