“It’s part of the 2021 budget” – DMO clarifies Buhari’s $ 6 billion loan request
The Debt Management Office (DMO) said President Muhammadu Buhari’s request for a $ 6 billion (naira 2340 billion) loan is already in the 2021 budget.
Tuesday, Buhari asked the National Assembly to approve the request.
Buhari said the sum – about $ 6.183 billion – will be raised from multilateral and bilateral tenders as well as the international capital market.
“His Excellency President Muhammadu Buhari recently wrote a letter to the National Assembly (NASS) requesting the approval, by resolution of 2,343 billion naira, of a new round of external capital,” a statement read. Tuesday by DMO.
“The new proposed capital raising is the New External Loan already provided for in the 2021 Appropriations Law. We will recall that the president signed the 2021 appropriations bill which included new domestic loans and new external loans after the NASS approval.
“As a result, the new capital increase has already been approved and is now presented to NASS in order to fulfill the provisions of Articles 21 and 27 of the Debt Management Office (Establishment, etc.) Act 2003” .
The agency explained that the loan proceeds are to be used for investment projects in various sectors of the economy, including electricity, transport, agriculture and rural development, education, health and water resources which are included in the 2021 finance law.