Fresh N2.34trn Loan Is For Capital Projects, Says DMO

Director General of DMO, Patience Oniha
Director General of DMO, Patience Oniha

Fresh N2.34trn Loan Is For Capital Projects, Says DMO

 

 

 

The Debt Management Office on Tuesday said the request by President Muhammadu Buhari for the National Assembly’s approval for fresh N2.34tn loan was meant to provide funds for capital projects such as power, transport, agriculture and rural development, education, health and water resources.

This, it said, was in line with the 2021 Appropriation Act.

The DMO made the clarification in a statement titled ‘Clarification on Mr President’s request for NASS’s resolution for N2.34tn new capital raising’.

According to the statement, provision for the loan had been previously made in the 2021 Budget which was approved in December 2020.

The statement read, “The proposed new capital raising is 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.

“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 statement added that the loan would be used for capital projects, such as power, transport, agriculture and rural development, education, health and water resources.

It added that the proceeds were 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 were included in the 2021 Appropriation Act.

 

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