The Senate, on Wednesday, approved the request made by President Muhammadu Buhari to borrow N2.3 trillion ($6.183 billion) from external sources to fund the 2021 budget deficit.
The approval was given after the consideration of the report of the Committee on Local and Foreign Debts, chaired by Senator Clifford Ordia (Edo State).
Buhari had, in May, sought the approval of the National Assembly to source $1.5bn and €995 million external borrowings from multiple avenues, including multilateral and bilateral lenders, as well as the International Capital Market (ICM) via issuance of Eurobonds.
The president has said the loan would be used to finance critical infrastructure projects in transportation, health, and education, among others.
The Senate approved the president request for the issuance of $3 billion but not more than $6.1 billion Eurobond in the International Capital Market for the implementation of the external borrowing of N2.3 trillion to finance part of the deficit authorized in the 2021 Appropriation Act.
The legislature also endorsed the committee’s recommendation that the fund should be raised from multiple sources such as the International Capital Market and any other multilateral or bilateral sources.
It also directed the Minister of Finance, Budget and National Planning, the Director General of the Debt Management Office and the Governor the Central Bank of Nigeria to submit to the National Assembly, within 10 working days, a letter containing the United State Dollars equivalent raised and received as a result of the loan approved as well as the applicable exchange rate.