Buhari Writes House, Seeks Approval for $4.054bn, €710m Fresh External Loans

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    President Muhammadu Buhari has written to the House of Representatives seeking for the approval o f $4.054 billion and £710 million fresh external loans to fund projects captured under the 2018-2021 borrowing plan.

    President Buihari i is also seeking approval for grant components of $125 million in the 2018-2021 external rolling borrowing plan.

    President Buhari, in the fresh request read by the Speaker, Hon. Femi Gbajabiamila, at the plenary on Wednesday explained that the projects listed in the 2018-2021 Federal Government Borrowing Plan are to be financed through sovereign loans from the World Bank, French Development Agency (AFD), China-Exim Bank, International Fund for Agricultural Development (IFAD), Credit Suisse Group and Standard Chatered/China Export and Credit (SINOSURE) in the total sum of $4,054,476,863.00; €710,000,000.00 and grant component of $125,000,000.00.

    The Speaker further explained that the amount would be used to fund federal and state projects and COVID-19 response efforts.

    The letter reads in part: “I write in respect of the above subject and to submit the attached addendum to the proposed 2018-2021 Federal Government External Borrowing (Rolling) Plan for the consideration and concurrent approval of the House for same to become effective. The projects listed in the addendum to the 2018-2021 Federal Government External Borrowing Plan are to be financed through sovereign loans from the World Bank, French Development Agency (AFD), China-Exim Bank, International Fund for Agricultural Development (IFAD), Credit Suisse Group and Standard Chartered/China Export and Credit (SINOSURE) in the total sum of $4,054,476,863.00; €710,000,000.00 and Grant Component of $125,000,000.00

    “The House is kindly invited to note that the projects and programmes in the Borrowing Plan were selected based on positive, technical and economic evaluations and the contribution they would make to the socio-economic development of the country including employment generation and poverty reduction as well as protection of the most vulnerable and very poor segments of the Nigerian society

    “The House may also wish to note that all the listed projects in the addendum form part of the 2018-2021 External Borrowing Plan and cover both the federal and state government projects and are geared towards the realization of the Nigeria Economic Sustainability Plan that cut across key sectors such as infrastructure, health, agriculture and food security, energy, education and human capital development and COVID-19 response efforts

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    “A summary of some key projects in each of the six geo-political zones and a summary on the expected impacts on the socio-economic development of each of the six geo-political zones are attached herewith as Annex II and III. Given the importance attached to the timely delivery of the projects listed in the proposed Borrowing Plan and the benefits both the federal and state governments stand to gain from the implementation of same, I hereby wish to request for the kind consideration and concurrent approval of the House for projects listed in the addendum to the 2018-2021 Federal Government External Borrowing Plan to enable the projects become effective.”

    The president had, on May 18, 2021, sought the approval of the lawmakers to borrow $6.18 billion external loan to finance this year’s N5.6 trillion budget deficit. The request was approved by the lawmakers before they embarked on their annual recess.
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