Senate okays $5.5 billion loan for FG

Henrietta Strickland
November 14, 2017

Nigeria will move ahead with plans to borrow $5.5 billion from foreign investors after the Senate on Tuesday approved President Muhammadu Buhari request for the move.

The external borrowing would include $2.5 billion in Eurobonds to plug part of the 2017 budget deficit and $3 billion to refinance maturing domestic debt to lower the country's funding costs.

The Committee on Local and Foreign Debts had on October 19 invited the Minister of Transportation, Rotimi Amaechi, and some other members of the executive to explain the benefits of the loan.

"The projects when completed will create job through its chain of downstream economic activities", Sani said. "The balance of the 2017 external borrowing in the sum of $3.2 billion is planned to be partially sourced in the ICM of $2.5 billion through Eurobonds or a combination of Eurobonds and Diaspora bonds, while $700 billion is proposed to be raised from multilateral sources". "The projects will improve the federal government's revenue".

He further maintained that terms and conditions attached to those bonds were favourable to the integrity of the current administration, particularly as it affect the critical infrastructure, the bond was meant to finance.

Deputy Senate President Ike Ekweremadu who presided over the session stated that the Senate would continue to work with the executive arm of government to ensure that the objective of the 2017 budget is achieved.

"Again, if we single them out, they cover power, rail, roads, even building bridges across the various water channels and the issue of the second run way".

He said, "This Senate will continue to partner with the Federal Government in matters that concern the ordinary people of Nigeria". An appropriation act is useless if it is not implemented.

Other reports by Click Lancashire

Discuss This Article

FOLLOW OUR NEWSPAPER