Happening now: President Buhari seeks Senate approval to borrow fresh N2.3 Trillion External Loan

The Nigerian President, Major General Muhammadu Buhari (retd.), has in a letter addressed to the Senate President, Ahmad Lawan, and read at plenary Tuesday, asked the Senate to approve another N2.3trillion ($6.18bn) external loan.

According to The Punch, President Buhari said the proposed loan which is equivalent to N2.3trillion is to finance the 2021 budget deficit of N5.6 trillion.

He added that the loan would enable the Federal Government to fund critical infrastructural projects in transportation, health, and education among others.

The Nigerian Senate had barely one month approved the sum of $1.5bn and €995 million external borrowings for the Federal Government before the present decision to borrow additional N2.3 Trillion. 

The earlier approved loans were part of the $5.5 billion and €995 million external borrowings 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.

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