President Muhammadu Buhari has written to the Senate and the House of Representatives requesting the resolution of the National Assembly for the implementation of the New External Borrowing of N2.343 Trillion in the 2021 Appropriation Act, and also approval of Donor Fund Projects under the 2018-2020 Federal Government External Borrowing (Rolling) Plan.

The letters which were read in the Senate by the President of the Senate, Sen. Ahmad Lawan (APC: Yobe), and in the House of Representatives by the Deputy Speaker, Hon. Idris Wase (APC: Plateau), at the plenary session of Tuesday, 18 May 2021,  indicated that President Buhari requested for a Resolution of the National Assembly to raise the sum of N2,343,387,942,848.00 Trillion (about $6,183,081,643.40 Billion at the Budget Exchange Rate of $1/N379) provided as New External Borrowing in the 2021 Appropriation Act to part-finance the budget deficit of N5.602 trillion.

President Buhari stated that the aforementioned sum will be raised from multi-lateral and bi-lateral sources, and the issuance of Eurobonds in the International Capital market. According to him, the request was in line with the provisions of section 21(1) and 27(1) of the Debt Management Office (DMO) Act, 2003 which provides that:

21(1) “No External loan shall be approved or obtained by the Minister unless its terms and conditions shall have been laid before the National Assembly and approved by its resolution”.

27(1) “The National Assembly may by a resolution approve from time to time, standard terms and conditions for the negotiation and acceptance of external loans and issuance of guarantees”.

In addition, President Buhari had stated that the donor funded projects under the 2018-2020 External Borrowing (Rolling) Plan will be financed through sovereign loans from the World Bank, African Development Bank (AfDB), Islamic Development Bank, French Development Agency, and the China EXIM Bank.

Others include, the China Development Bank, European Investment Bank, European ECA, KfW, IPEX, AFC, India EXIM Bank and the International Fund for Agricultural Development (IFAD) at a total sum of $36,837,281,256 plus €910,000,000 and the Grant Component of $10,000,000.

Furthermore, he noted that the projects and programmes in the Borrowing Plan were selected based on technical and economic evaluation that will promote employment generation, social protection and poverty reduction. Also, the listed projects which are owned by the Federal and State Governments are geared towards the realization of Nigeria’s Economic Sustainability Plan that cuts across key sectors such as Infrastructure, Health, Agriculture and Food Security, Energy, Education, Human Capital Development and the COVID-19 response initiatives.

The letters which were read in the Senate by the President of the Senate, Sen. Ahmad Lawan (APC: Yobe), and in the House of Representatives by the Deputy Speaker, Hon. Idris Wase (APC: Plateau), at the plenary session of Tuesday, 18 May 2021,  indicated that President Buhari requested for a Resolution of the National Assembly to raise the sum of N2,343,387,942,848.00 Trillion (about $6,183,081,643.40 Billion at the Budget Exchange Rate of $1/N379) provided as New External Borrowing in the 2021 Appropriation Act to part-finance the budget deficit of N5.602 trillion.

President Buhari stated that the aforementioned sum will be raised from multi-lateral and bi-lateral sources, and the issuance of Eurobonds in the International Capital market. According to him, the request was in line with the provisions of section 21(1) and 27(1) of the Debt Management Office (DMO) Act, 2003 which provides that:

21(1) “No External loan shall be approved or obtained by the Minister unless its terms and conditions shall have been laid before the National Assembly and approved by its resolution”.

27(1) “The National Assembly may by a resolution approve from time to time, standard terms and conditions for the negotiation and acceptance of external loans and issuance of guarantees”.

In addition, President Buhari had stated that the donor funded projects under the 2018-2020 External Borrowing (Rolling) Plan will be financed through sovereign loans from the World Bank, African Development Bank (AfDB), Islamic Development Bank, French Development Agency, and the China EXIM Bank.

Others include, the China Development Bank, European Investment Bank, European ECA, KfW, IPEX, AFC, India EXIM Bank and the International Fund for Agricultural Development (IFAD) at a total sum of $36,837,281,256 plus €910,000,000 and the Grant Component of $10,000,000.

Furthermore, he noted that the projects and programmes in the Borrowing Plan were selected based on technical and economic evaluation that will promote employment generation, social protection and poverty reduction. Also, the listed projects which are owned by the Federal and State Governments are geared towards the realization of Nigeria’s Economic Sustainability Plan that cuts across key sectors such as Infrastructure, Health, Agriculture and Food Security, Energy, Education, Human Capital Development and the COVID-19 response initiatives.