Clarifying the purpose for the N2.343 trillion loan request by President Muhammadu Buhari, the Debt Management Office (DMO) said that the borrowed funds would be used for capital projects.
The agency shared this in a post on Twitter, noting that “the New External Borrowing already provided for in the 2021 Appropriation Act. It will be recalled that the President signed the 2021 Appropriation Bill which included New Domestic and New External Borrowing into law after the approval of NASS.”
It added that the new capital raising had already approved and was awaiting action from the national assembly.
The statement read, “Accordingly, the new capital raising has already been approved and is now being presented to NASS in order to fulfil the provisions of Sections 21 and 27 of the Debt Management Office (Establishment, Etc.) Act, 2003.
“The proceeds are to be deployed to capital projects in various sectors of the economy including power, transport, agriculture and rural development, education, health and water resources that are included in the 2021 Appropriation Act.”
Recall that BizWatch Nigeria reported that Buhari had written to the Senate seeking the approval of a fresh loan of N2.3 trillion.
This comes after the president requested the approval of $1.5 billion and 995 million euros last month.