The Senate, on Wednesday, approved the loan request of President Muhammadu Buhari’s of $16bn. The fresh loan of $16bn is equivalent to N6.7tn using the Importers and Exporters Window Exchange rate of N411.24 for $1.
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President Muhammadu Buhari received the approval of these loans for what he termed as “legacy projects”. The President seeks to borrow the sim of $16.2bn and €1.02bn. The Senate on Wednesday also approved the request of the Bank of Industries for the issuing €500m. The senate says they will not approve more than €750m Eurobond in the international capital market.
The approval of these loans had a clause attached to them, which is that the terms and
conditions of the loans from the funding agencies be forwarded to the National Assembly prior to their execution for approval and proper documentation.
The approval of the two loans by the red chamber follows a consideration by the Senate Committee on Local and Foreign Debt on a proposed plan for External Borrowing from 2018 to 2020. This committee, chaired by Senator Clifford Ordia, said in his presentation that Buhari’s request complied with the Debt Management Office (Establishment) Act, 2003 and the Fiscal Responsibility Act, 2007.