Buhari Seeks Senate Approval For $6.183bn External Loan

President Muhammadu Buhari has sought the approval of the Senate for an external loan of 6.183 billion dollars, to fund the deficit of N5.602triillon in the 2021 Appropriation Act.

This is contained in a letter addressed to the President of Senate, Dr Ahmad Lawan and read at plenary on Tuesday.

Buhari said the request was in line with the provisions of section 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act 2003.

He said the loan would be sourced from a combination of multilateral and bilateral lenders and the International Capital Market (ICM) through the issuance of Euro bonds.

Buhari said accessing the ICM would be relatively cheaper, thereby moderating debt service cost and ensuring an increase in external reserve.