President Muhammadu Buhari on Tuesday asked the Senate to approve another tranche of external loans valued at $36,837,281,256 plus Euro 910,000,000 and Grant Component of USD 10,000,000.
President Buhari said in a letter addressed to Senate President, Ahmad Lawan, and read at plenary that the proposed loan is to finance the 2021 budget deficit of N5.6 trillion.
The loan request is coming barely one month after the Senate approved the sum of $1.5 billion and €995 million external borrowings for the Federal Government.
Nigeria’s total Public Debt as at December 31, 2020 was N32.915 Trillion. The figures include the Debt Stock of the Federal and State Governments, as well as, the Federal Capital Territory.
Specifically, the new tranche of loans would enable projects listed under the 2018-2020 External Borrowing Plan to be financed through sovereign loans from the World Bank, African Development Bank (AfDB), French Development Agency (AFD), Islamic Development Bank, China EXIMBank, China Development Bank, European Investment Bank, European ECA, KtW, lPEX, AFC, India EximBank and International Fund for Agricultural Development (IFAD).
President Buhari added that the projects are geared towards the realization of the Nigerian 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 in the six geo-political zones of the country.
According to the letter: “It is with pleasure that I forward the list of all the Donor funded projects under the 2018-2020 Federal Government External Borrowing (RoIIing) Plan for the consideration and concurrent approval of the Senate for same to become effective.
“The Projects listed under the 2018-2020 External Borrowing Plan are to be financed through sovereign loans from the World Bank, African Development Bank (AfDB), French Development Agency (AFD), Islamic Development Bank, China EXIMBank, China Development Bank, European Investment Bank, European ECA, KtW, lPEX, AFC, India EximBank and International Fund for Agricultural Development (IFAD) at a total sum of USD 36,837,281,256 plus Euro 910,000,000 and Grant Component of USD 10,000,000.
“Distinguished Senate President may wish to know that the projects and programmes in the Borrowing Plan were selected based on positive, technical and economic evaluations as well as 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.
“Distinguished Senate President may also wish to know that all the listed projects form part of the 2018-2020 External Borrowing Plan covered both the Federal and States Governments’ Projects and are geared towards the realization of the Nigerian 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.
“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 (6) geo-political zones.
“Given the importance attached, to the timely delivery of the projects listed in the proposed Borrowing Plan and the benefits both the Federal and States Governments stand to gain from the implementation of same, I hereby wish to request for the kind consideration and concurrent approval of the Senate for the 2018 2020 Federal Government External Borrowing (Rolling) Plan to enable the projects become effective.”
