President Muhammadu Buhari on Tuesday sent a letter to the Senate requesting approval for the country to borrow $5.5 billion externally.
According to the President, the money will be used to finance capital projects in the 2017 budgets and also for the servicing of maturing internal debts.
The President in the letter noted that that the 2017 budget has a 2.356 trillion deficit.
The letter read in part, “Implementation of the external borrowing plan approved in the 2017 appropriation Act. External borrowing to refinance maturing domestic debts through the issuance of $3 billion Euro bond in the international capital market or through a loan syndication.”
“The senate may wish to refer to 2017 appropriation Act which has a deficit of 2.356 trillion and provisions for near borrowings 2.321 trillion. The Act also provides for 1.254 trillion and external borrowing of 1.067 trillion about $3.5 billion. Issuance of $2.5 billion for financing the 2017 appropriation Act.”
More to follow…