The Senate has given a quick approval for President Muhammadu Buhari to access N850 billion loan for the government.
President Buhari’s letter seeking the loan was address today at a senate plenary. The lawmakers met physically at the National Assembly despite the coronavirus lockdown in Abuja.
The loan, which will be sourced from domestic capital market, is needed to finance projects and programmes in the 2020 budget, he said.
The lawmakers suspended relevant rules to give immediate consideration and passage to the request.
The president’s message was conveyed in a letter which was read out by the Senate President, Ahmad Lawan, at the start of plenary on Tuesday.
Part of the letter reads, “Request for the National Assembly to raise N850 billion in new external borrowing in the 2020 Appropriation Act in naira from the domestic capital market.
“The Senate may wish to recall that the 2020 Appropriation Act provided for 1,594,986,700,544 of new domestic borrowing and N850 billion of new external borrowing. These borrowings were to part finance the 2020 budget deficit of 2,175,197,885,232 only.
“Furthermore, the Senate may wish to note that external borrowing from the international capital market increases Nigeria’s external reserves. provides access to lower costs as well as avoids crowding out private sector borrowers who also wish to access the domestic capital market.
“However, recent developments in the global economic environment as a result of the Coronavirus pandemic and the decline in international oil prices have made it less attractive to borrow from the international capital markets at this time.
“To ensure that there are adequate funds to finance critical projects and programmes in the 2020 budget I hereby seek the Senate’s approval that resolution to raise the N850 billion of new external borrowing in naira from the domestic capital market instead of from the international capital market.
