BusinessPolitics & Governance

Senate approves FGs $6.1 billion loan request

The Nigerian Senate has approved the $6.1 billion loan request by the Federal Government.

The Red chamber granted the approval on Wednesday at plenary in Abuja after it considered a report from its Committee on Local and Foreign Debt.

Chairman of the committee, Senator Clifford Ordia who spoke on the request said it is not new as it was approved in the borrowing plan when the National Assembly passed the 2021 budget noting that it would be used to fund the budget deficit.

It would be recalled that in May this year, President Muhammadu Buhari asked the National Assembly to approve the loan request, saying it would be raised from multilateral and bilateral tenders as well as the international capital market.

Consequent on this, the Committee recommended that the Senate should approve Buhari’s request for the issuance of $3,000,000,000 but not more than $6,183,081,643.40 Eurobond in the International Capital Market.

The External Borrowing of N2,343,387,942,848, according to the panel, should be for the financing of part of the deficit authorised in the 2021 Appropriation Act.

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