BREAKING: Senate approves Buhari’s request for foreign loan of 2.3 trillion naira, to raise public debt to about 35 trillion naira
The National Assembly approved President Muhammadu Buhari’s request to borrow N2, 343, 387, 942, 848, to partially fund the 2021 federal budget size of N13 trillion.
This Senate resolution follows the approval of its Committee on Local and Foreign Loans as presented by President Clifford Ordia.
The Committee recommended that the Senate approve Buhari’s request for the issuance of $ 3,000,000,000 but not more than $ 6,183,081,643.40 of Eurobonds in the international capital market, Punch reports.
The external loan of N 2,343,387,942,848, according to the panel, should be intended to finance part of the deficit authorized in the 2021 finance law.
The Committee also recommended that the Senate approve that the authorized amount may be raised from multiple sources such as the international capital market and any other multilateral or bilateral source available.
He also recommended that the Senate order the Minister of Finance, Budget and National Planning, the Director General of the Debt Management Office and the Governor of the Central Bank of Nigeria to submit to the National Assembly within a deadline. 10 business days (excluding the day of the close of trading) a letter containing the amount in United States dollars so collected and received as a result of the above approval as well as the applicable exchange rate .
Under Buhari, Nigeria’s debt profile continued to increase.
Nigeria’s public debt reached a total of 31.01 trillion naira at the end of June 2020, according to the Debt Management Bureau.
This means that between May 2015 and June 2020, five years under President Buhari, the country’s debt increased by N18.8 trillion.
At the end of June 2015, one month after the current regime came to power, the country’s debt profile stood at N12.12 trillion.
Nigeria’s total stock of public debt in September 2020, increased by over 6 trillion naira in just one year to reach 32.2 trillion naira. This is indicated by the report on Nigeria’s domestic and foreign debt, recently released by the National Bureau of Statistics (NBS).
Total external debts for the period ended September 2020 amounted to $ 31.9 billion compared to $ 31.4 billion in June 2020, according to nairametrics.
Total domestic debt rose to 20 trillion naira in September 2020, from 19.6 trillion naira in June 2020.
Nigeria now has a combined total public debt (domestic and foreign) estimated at 32.2 trillion naira.
This is an additional N 6.01 trillion from the N 26.21 trillion recorded in the corresponding period of 2019.
Nigeria plans to borrow more in 2021.
The breakdown shows that external debt accounted for 37.82% (12.19 trillion naira) of the total debt stock, while domestic debt at 20.04 trillion naira made up 62.18% of the total.