The House of Representatives approved the sums of $2.786 billion and $82.54 million as the New External Capital Raising from the International Market as provided in the 2018 Appropriation Act to refinance the balance of N500 million Eurobond which matured on 12th July 2018 following the recommendations of its Committee on Local and Foreign Debt.
It will be recalled that the Speaker of the House, Hon. Yakubu Dogara (PDP: Bauchi) on Tuesday, 16th October 2018 at plenary, read a communication from President Buhari requesting for the said sum to part-finance the 2018 Budget’s fiscal deficit and key infrastructure projects.
Presenting the report at the plenary session of Tuesday, 23 October 2018, Hon. Adeyinka Ajayi (APC: Osun) Chairman of the Committee on Aids, Loans and Debt Management stated that it had considered and reviewed the request of President Muhammadu Buhari in respect of the issuance of the said monies and arrived at the finding that the external capital raising of $2.786 billion will reduce Nigeria’s debt portfolio and further contribute to the implementation of the Debt Management Strategy of the Federal Government. He also listed other benefits of the proposed external capital raising which seeks to reduce the cost of borrowing, lengthen the maturity of public debt stock and help increase Nigeria’s external reserve.
Following his presentation, the House adopted the recommendations of the Committee to approve the issuance of USD2.786 billion from the International Capital Market approved in the 2018 Appropriations Act and issuance of USD82.54 million to refinance the balance of USD500 million matured Eurobond in the International Capital Market. The House also urged the Federal Government to reduce or limit its request for more external borrowing and source for other means of generating revenue internally.
