The Nigeria's National Assembly (NASS) had on Thursday, 18th October 2018 approved the Federal Government intention to borrow the sum of 2.86 million dollars.
It would be recalled that the Federal Government (FG) under the watch of President Muhammadu Buhari on Tuesday, 9th October 2018 wrote a letter to the NASS seeking approval for a fresh external loan of $2,868,540,000.
The letter, which was read by the President
of the Senate, Bukola Saraki during plenary, was also
copied to the House of Representatives as the custom demands.
Rostrum learnt that in the letter, President Buhari said that the loan would be used to partly fund the 2018 budget.
According to the breakdown of the loan, while $2.786 billion would be borrowed from the international capital market the part-financing of the 2018 budget’s fiscal deficit as well as to finance key infrastructure projects in 2018 budget, the FG needs to raise another $82.54 million from the international capital market to refinance the balance of $500 million mature Eurobond in the international capital market.
According to the breakdown of the loan, while $2.786 billion would be borrowed from the international capital market the part-financing of the 2018 budget’s fiscal deficit as well as to finance key infrastructure projects in 2018 budget, the FG needs to raise another $82.54 million from the international capital market to refinance the balance of $500 million mature Eurobond in the international capital market.
President Buhari’s letter reads: “Pursuant
to Sections 21 (1) and 27 (1) of the Debt Management Office
(Establishment Etc) Act, 2003, I hereby request for distinct and
specific resolutions of the National Assembly to:
“Issue USD2.786 billion in Eurobonds and other securities in the international capital market for the implementation of New External Borrowing approved in the Federal Government of Nigeria’s 2018 Appropriation Act, for the part-financing of the 2018 budget’s fiscal deficit as well as to finance key infrastructure projects in 2018 budget.
“Issue USD2.786 billion in Eurobonds and other securities in the international capital market for the implementation of New External Borrowing approved in the Federal Government of Nigeria’s 2018 Appropriation Act, for the part-financing of the 2018 budget’s fiscal deficit as well as to finance key infrastructure projects in 2018 budget.
“And issue Eurobonds and other securities
in the international capital market for the refinancing of USD82.54
million, being the balance of the five-year, USD 500 million mature
Eurobonds.”
The President also sought Senate’s approval for N346 billion Niger Delta Development Commission (NDDC) budget for 2018.
Breakdown of the budget indicates that
while N313.883 billion should be appropriated for capital expenditure,
the sum of N31 billion was earmarked for recurrent expenditure.
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