2021 Budget Deficit: Buhari writes Senate to approve $6.2bn external loan

2021 Budget Deficit: Buhari writes Senate to approve $6.2bn external loan

President Muhammadu Buhari has sought the approval of the Senate for an external loan of $6.183 billion, to fund the deficit of N5.602 trillon in the 2021 Appropriation Act.

This is contained in a letter addressed to the President of Senate, Dr Ahmad Lawan, and read at plenary on Tuesday.

The president said the request was in line with the provisions of sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act 2003.

He said the loan would be sourced from a combination of multilateral and bilateral lenders and the International Capital Market (ICM) through the issuance of Eurobonds.

Buhari said accessing the ICM would be relatively cheaper, thereby moderating debt service costs and ensuring the increase in external reserve.

Details later…