Nigeria's Senate approves Buhari's request to seek $5.5 bln in foreign loans

Modesto Morganelli
Novembre 14, 2017

The Senate at Tuesday's plenary has approved a total of $5.5bn loan earlier requested by President Muhammadu Buhari.

The President's request, which included external loan of $3 billion and the issuance of a $2.5 billion Eurobond in the worldwide Market was approved by the Senate on Tuesday.

Buhari explained that the bonds would be channelled towards funding the 2017 budget, while the loan would be used in refinancing maturing domestic debts. With the $3bn to be used for refinancing domestic debts, local lenders owed by the federal government may now expect to be paid. "Let me say that we need to urge the DMO to ensure that our debt profile is watched and that we do not exceed or overblow our debt".

It said that the loan will reduce the cost of the debts while the projects are essential for rapid economic and social development of Nigeria.

The committee said that the Mambila Hydro Power Project which had always been abandoned when completed will add substantially to the National grid and improve power output of the country.

He said, "This Senate will continue to partner with the Federal Government in matters that concern the ordinary people of Nigeria. The projects will improve the federal government's revenue".

"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".

"Times were when the executive could have spent or collected this loan without recourse to the National Assembly". He added that he was confident that the infrastructure projects to be executed with the sums borrowed would have a major impact on the economy.

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