N2.3trn External Loan: Senate Refers Buhari’s Request to Committee
By Deji Elumoye and Emameh Gabriel
The Senate Tuesday referred President Muhammadu Buhari’s request for N2.3trn external loan to fund the 2021 budget deficit to its committee on Local Debts and Foreign Loan for further legislative work.
The committee headed by Senator Clifford Ordia has two weeks to report back to Senate plenary.
President Buhari had on May 18, 2021 written to the Senate seeking the approval of N2.3trn ($6.18bn) external borrowing to fund the 2021 budget deficit of N5.6trn
President of the Senate, Ahmed Lawan, during Tuesday plenary drew the attention of his collegues to the letter which he read before them for second time.
The President had in the letter indicated that the loan would enable the federal government to fund critical infrastructural projects in health, education, etc.
The letter came barely a month after the Senate approved the sum of $1.5bn and €995 million external borrowings for the federal government.
The loans were part of the $5.5 billion and €995 million external borrowings President Muhammadu Buhari had, in May, 2020, asked the Red Chamber to approve to finance various priority projects of the federal government and to support the state governments facing fiscal challenges.