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Senate Approves Buhari’s $5.5b Borrowing Plan

By Dipo Olowookere

The Senate on Tuesday approved the request by President Muhammadu Buhari to seek a foreign loan of $.5.5 billion.

The request was granted following a report submitted today by Chairman of the Senate Committee on Local and Foreign Debts, Mr Shehu Sani, who looked into the matter alongside his members.

At the plenary on Tuesday, the lawmakers said the President can go ahead with the borrowing plan of his administration.

According to the President, $2.5 billion would be sourced from the issuance of Eurobonds or a combination of both Eurobonds and Diaspora bonds; while $3 billion would be obtained from the issuance of Eurobond in the international capital market and/or loans syndication by the banks for refinancing of maturing domestic debts obligations of the Federal Government of Nigeria.

Mr Buhari, in a letter dated October 4, 2017, had informed the upper parliament that, “Accordingly, the Senate is requested to kindly approve the following external borrowings: Issuance of $2.5 billion in International Capital Market through Eurobonds or a combination of Eurobonds and Diaspora bonds for the financing of the Federal Government of Nigeria’s 2017 Appropriation Act and capital expenditure projects in the Act.

“Issuance of Eurobond in the ICM and/or loans syndication by the banks in the sum of $3 billion for refinancing of maturing domestic debts obligations of the Federal Government of Nigeria, while looking forward to the timely approval of the National Assembly to enable  Nigerians to take advantage of this  opportunities for funding.”

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan.

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