 in the 2021 Appropriation Act for President){kind=link}
The Senate on Wednesday passed an external loan request of N2.343 trillion (about $6.183 billion) in the 2021 Appropriation Act for President Muhammadu Buhari.
The upper legislative chamber granted approval to the Presidential request after a consideration of the report on the request read on the floor of the chamber by the Chairman, Senate Committee on Local and Foreign Debts, Clifford Ordia.
President Buhari had on the 6th of May, 2021 asked the Senate to authorize the borrowing of the new external loan already captured in the 2021 Appropriation through the issuance of Eurobond in the International Capital Market(ICM).
The President’s request is in line with provisions of Section 21(1) and 27(1) of the Debt Management Office Establishment Act and also with provisions of Section 41(2) of the Fiscal Responsibility Act 2007.
The external loan which represents roughly a quarter of Nigeria’s National budget of N13 trillion for 2021 is the second approval granted by President Buhari this year; the first being approval of the $1.5 billion and €995 million in April.
According to the Committee Chairman, the loan had become necessary in view of the sharp fall in Nigeria’s annual revenues needed for rapid infrastructure and capital development in the country.
“We have had to pass deficit budget every year requiring us to borrow to finance the deficit in our budget.”
The loan, however, comes amid growing concerns in many quarters that Nigeria is borrowing too much; increasing the country’s debt profile.