President Muhammadu Buhari, on Tuesday, urged the Senate to approve a new external loan of N2,343,387,942,848.00, about $6.183billion, for the Federal Government to finance the 2021 budget deficit.
The money is meant to part-finance the budget deficit of 5.602 trillion Naira in the 2021 budget.
President of the Senate, Ahmed Lawn read the letter during plenary on Tuesday.
The President is requesting for the resolution of the National Assembly for the implementation of the external borrowing of 2.18 billion dollars in the 2021 Appropriations Act.
President Buhari further stated in the letter that the 2021 budget provides for 4.686 trillion as new borrowing to part-finance the 2021 fiscal deficit of which 50 percent is specified as new external borrowing.
The loan is to be sourced from a combination of sources namely multilateral and bilateral lenders, the international capital market through the issuance of Eurobonds.
Also the Speaker of the House of Representatives, Femi Gbajabiamila, read the same letter from President Buhari to the lawmakers.
