Senate approves FG’s $ 6.1 billion loan request

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The Nigerian Senate has approved a request for a loan of 6.1 billion dollars (2.3 trillion naira) from the federal government to finance the appropriations bill 2021.

This was approved by the Senate on Wednesday after a report presented by Senator Clifford Ordia, chairman of the Senate Committee on Local and Foreign Debt, according to The nation.

The senator said the loan would be financed by multilateral and bilateral companies, adding that the Senate had approved the borrowing of 4.6 trillion naira in the 2021 budget law and the new borrowing of 2.3 trillion naira. naira will partially finance the deficit. in the 2021 budget.

READ: Nigeria records 98% debt service-to-income ratio between January and May 2021

What the senator said

Senator Ordia was quick to note that the borrowing plan was not new but had already been approved when the National Assembly passed the 2021 finance bill.

“What we are about to spend is not a new loan, it was approved in the 2021 budget”, Ordia said.

Senate Speaker Ahmad Lawan said every penny of the proposed amount borrowed would count, urging committees to be alive to oversee it.

“Let me thank the committee, this is not a new loan. This is a borrowing plan that we have approved. What we have done is provide the resolutions necessary for its implementation.

Every penny counts. Our committees must be alive to watch it. No frivolous expenditure should be incurred ”, Lawan said.

READ: Budget 2021: 316 duplicate investment projects for a total of 39.5 billion naira – BudgIT

In case you missed it

Nairametrics reported in May that the president sent a letter to the Senate requesting approval of a $ 2.18 billion external loan to fund the 2021 finance bill.

In the letter that was read to the Senate, the Presidency stated that it was “Request for a resolution from the National Assembly for the implementation of the external loan of 2.18 billion dollars in the 2021 finance law and request for approval of projects financed by donors within the framework of the rolling plan of ‘external loan from the federal government 2018-2020’.


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