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Senate approves Buhari's $5.5bn foreign loan request

14 November 2017

The Senate has approved a $5.5 billion loan request by President Muhammadu Buhari.

According to Buhari's letter on October 4, 2017, the external borrowing was captured in the 2017 budget which has a deficit of N2.35 trillion out of which N2.321 trillion is to be borrowed.

Buhari had asked the upper chamber to approve the borrowing of $2.5 billion to finance the 2017 budget.

The Debt Management Office, DMO has repeatedly said it will help the Nigerian economy to rebalance the government's borrowing by paying down some of its domestic debt via an external borrowing to reduce the cost of borrowing and also to give the real sector some elbow room to access badly needed capital at home.

The committee noted that the $3 billion for refinancing of the country's domestic debts will not lead to an increase in the public debt portfolio. "The projects will improve the federal government's revenue".

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"The Mamblilla hydro power project which has always been abandoned when completed will add substantially to the national grids thus improve power output of the country".

Mambilla Hydropower Project, ii. construction of a second runway at the Nnamdi Azikiwe International Airport Abuja, iii. counterpart funding for rail projects iv. construction of the Bode-Bonny Road, with a bridge across the Opobo Channel.

Refinancing refers to the process of eliminating an existing debt with payments from another loan obtained under more favourable terms. This Senate is known to be working together for the benefit of all Nigerians.

In his comment, the Senate Leader, Ahmed Lawan, lauded the executive and the Senate for their cooperation in approval of the loan. "Mr. President, these are infrastructural projects that will have very positive impacts on the economy".

Senate approves Buhari's $5.5bn foreign loan request