Buhari seeks Senate appproval for $4b, €710m loans to execute ’emerging needs’

[FILES] President Muhammadu Buhari Presentimh the 2021 Budget at the Joint Sitting of the National Assembly Abuja. PHOTO Philip Ojisua

Nigeria President Muhammadu Buhari is seeking the approval of the National Assembly to borrow another $4 billion ($4,054,476,863) and €710 million loan from bilateral and multilateral organisations to fund the deficit in the 2021 budget.

Buhari, in a letter to the Senate, said the loan request is an addendum to the 2018-2020 borrowing plan.

Senate President Ahmad Lawan read Buhari’s letter at the start of plenary on Tuesday.

“I write on the above subject and submit the attached addendum to the proposed 2018-2020 external rolling borrowing plan for the consideration and concurrent approval of the senate for the same to become effective,” Buhari said.

“The distinguished senate president may recall that u submitted a request on 2018-2020 borrowing plan for the approval of the senate in May 2021.

“However, in view of other emerging needs and to ensure that all critical projects approved by FEC as of June 2021 are incorporated, I hereby forward an addendum to the proposed borrowing plan.

“The projects listed in the external borrowing plan are to be financed through sovereign loans from the World Bank, French Development Agency, EXIM Bank and IFAD in the total sum of $4,054,476,863 and €710 million and grant components of $125 million.”

He also asked the lawmakers to approve grant components of $125 million.

Buhari explained that the need to borrow more funds is to meet the “emerging needs” of “some critical projects”.

The Nigeria president said the loans, when obtained, will stimulate the economy and create job employment.