President Muhammadu Buhari has written to the National Assembly for the approval of a fresh $6.1billion external loan.He is seeking to borrow $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 of the House while the Senate President, Ahmad Lawan, read the letter during the plenary session of the Senate 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 President is requesting for the resolution of the National Assembly for the implementation of the external borrowing of 2.18 billion dollars in the 2021 Appropriations Act.
President Buhari further stated in the letter that the 2021 budget provides for 4.686 trillion as new borrowing to part-finance the 2021 fiscal deficit of which 50 percent is specified as new external borrowing.
The loan is to be sourced from a combination of sources namely multilateral and bilateral lenders, the international capital market through the issuance of Eurobonds.