Senate approves $82.54 million Eurobond, warns Buhari against external borrowing

Chambers of the Nigerian Senate used to illustrate the story.
Chambers of the Nigerian Senate used to illustrate the story.

The Senate has approved $82.54 million to refinance the balance of $500 million matured Eurobond in the International Capital Market earlier requested by President Muhammadu Buhari.

The approval was made after the chairman of the Committee on Local and Foreign Debts, Shehu Sani, presented the report of the committee after considering Mr Buhari’s request.

In a letter dated July 23 which was read by the Senate President last Tuesday, Mr Buhari sought the approval of the Senate to raise $2.78 billion from the International Capital Market for part-funding of the 2018 budget.

The president said the amount, approved in the 2018 Appropriation Act, would be used to finance deficits and key infrastructure projects in the 2018 budget. The loan, according to him, will be raised from Eurobonds and other securities in the international capital market.

In the same letter, Mr Buhari also sought legislative nod for an external capital sourcing of 82.54 million dollars to refinance the balance of $500 million matured Eurobonds in the international capital market.

Presenting the report, Mr Sani recommended that the Senate “approve the issuance of $2.786 billion from the International Capital Market approved in the 2018 Appropriation Act.”

He also recommended that the Senate “approve the issuance of $82.54 million to refinance the balance of $500 million matured Eurobond in the International Capital Market.”

The lawmaker further advised “that the federal government should do everything possible to reduce or limit the request of all external borrowings and focus on generating revenues internally” – a recommendation which was adopted by the upper chamber.

The Senate also resolved that the committees carry out oversight functions on previous loans that have been granted by the chamber to ensure its effective implementation as requested.

The former Minister of Finance, Kemi Adeosun, had last year told the Senate Joint Committee on Appropriation and Finance that the inability to access foreign loans was a major impediment to funding of capital projects in the 2017 budget.

Support PREMIUM TIMES' journalism of integrity and credibility

 

Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.

For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.

By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.

Donate


NEVER MISS A THING AGAIN! Subscribe to our newsletter

* indicates required

DOWNLOAD THE PREMIUM TIMES MOBILE APP

Now available on

  Premium Times Android mobile applicationPremium Times iOS mobile applicationPremium Times blackberry mobile applicationPremium Times windows mobile application

TEXT AD: New Discovery! Click Here To See A Miracle Device That Can Cure DIABETES, BLOOD PRESSURE, STROKE, ARTHRITIS, PAINS, OBESITY And 50 Other CHRONIC DISEASES Without Drugs Or Herbs.. Click Here Now To See It


All rights reserved. This material and any other material on this platform may not be reproduced, published, broadcast, written or distributed in full or in part, without written permission from PREMIUM TIMES.