President Muhammadu Buhari has made a request to the National Assembly for its approval on the application of a 2.343 trillion Naira external loan to fund the budget deficit of the 2021 budget.
The loan will be sourced from the multilateral and bilateral lenders, the international capital market through Eurobonds issuance.
This was disclosed in a statement by the Senate President, Ahmed Lawan, during on Tuesday plenary.
According to the statement, it was stated that Buhari is seeking a resolution from the National Assembly to approve a new external loan of 2.18 billion dollars in the 2021 Appropriation Act to finance the budget deficit of N5. 602 trillion.
The President also stated that the request is in line with the provisions of sections 21(1) and 27(1) of the Debt Managemen Office Act, 2003 (DMO Act) which states that “No external loan shall be approved or obtained by the Minister unless it’s terms and conditions shall have been laid before the National Assembly and approved by its resolution while section 27(1) further states that “The National Assembly may by a resolution approved from time to time standard terms and conditions for the negotiation and acceptance of external loans and issuance of guarantees.”
Meanwhile, the statement was also sent to the Speaker of the House of Representatives, Femi Gbajabiamila, for the lawmakers to ascertain the request.
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