UPDATED: Buhari writes Senate, seeks approval for $3 billion external loan

President Mohd Buhari
President Mohammadu Buhari [Photo credit: Sahara Reporters]

President Muhammadu Buhari has written the Senate to seek approval for external loan to the tune of $3 billion.

The president also sought the lawmakers’ approval to issue a $2.5 billion Eurobond or Diaspora bond in the international market.

In a letter read by the Senate President, Bukola Saraki, the president said the bonds would be channelled towards funding of the 2017 budget while the loan would be used in refinancing of maturing domestic debts.

“The Senate may wish to know that in order to implement the external borrowings approved by National Assembly in the 2017 appropriation act, the FGN issued $300 million diaspora fund in the International Capital Market, ICM in June 2017,” the letter said.

“The balance of the 2017 external borrowing in the sum of $3.2 billion is planned to be partially sourced in the ICM of $2.5 billion through Eurobonds or a combination of Eurobonds and Diaspora bonds, while $700 billion is proposed to be raised from multilateral sources.

“It should be noted that intention is to issue the Eurobonds first with the objective of raising all the funds through Eurobonds and Diaspora bonds will only be issued when the full amount cannot be raised through Eurobonds.

“The Senate may wish to know that the proceeds of the proposed issuance of Eurobonds and and Diaspora bonds in the ICM will be used to finance the deficit of the 2017 appropriation act and provide funding for capital projects in the budget.

“The projects include the Mambilla hydro-power project, construction of the second runway of the Nnamdi Azikwe International Airport, counterpart funding of rail projects and construction of Bonny road with a bridge across Opobo channel.”
The President also seek the Senate’s approval to borrow $3 billion from external sources to finance the 2017 budget.

“In order to reduce debt service levels, and letting tenure profile of debt stock, the FGN seeks to substitute maturing domestic debts with less expensive long term external debts. The FGN seeks to source $3 billion through issuance of Eurobonds to the ICM and or loan syndication by banks as approved by the Federal Executive Council.

“It is important to note that the proposed sourcing of $3billion from external sources to refinance maturing domestic debts will not lead to an increase in public debt profile because debt already exist, rather, the substitution of domestic debts with relatively cheaper and long term external debts will lead to a significant decrease in debt service cost. This will also achieve more stability in the debt stock while also creating more borrowing space in the domestic market for the private sector.

“The Senate will recall that in the 2017 appropriation act, debt service had 1.66 trillion representing 32.73% of the FGN’s total expenditure which makes it important to urgent steps to reduce debt service cost,” the letter read.

The president noted that the terms of issuance of the bonds will be determined by the current condition of the International Capital Market.

The Minister of Finance, Kemi Adeosun, had last week 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.


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  • Watch man

    Something is grossly wrong with Nigeria leaders. Where are all the looted funds recovered? Why plunge Nigeria into more debt? This is highly unacceptable.

    • victoria

      Or someone should tell them not to borrow him the money

  • Shift Luther

    up Buhari 2019

  • dan

    Now, we are borrowing to finance debt pay back, up Buhari, up APC

    • Victoria

      Borrowing money for them to loot

  • Agba

    Blame TINUBU AND BISI AKANDE for putting ODUDUWA in this mess,for selling bad market to us, i don’t care of other region,they can go to blazes.

  • FreeNigeria

    Wow, mallam cow head Buhari economic, borrowing to pay debt. Wow.

    • Baba B

      For your information, local debts which is incurred in form of bonds usually come at higher cost because the government usually float these bonds when it is in desperate need of money or when it urgently needs to mop up cash from the system and to attract persons or organisations subscription, the interest rate has to be very high sometimes as high as 23%. Therefore if this debt is due, it makes a whole lot of sense to take an equal amount that is owed from an international source on a long term basis to net off what it is owing and pay it up gradually at a far cheaper rate. Let me brake it down so that you put this not only to rest, but to explain to others like you who abound the place. I owe FreeNigeria N10m as interest + capital that I borrowed from you two years ago and suddenly I realize this money is due in three months time, at a time when i have other projects to do with the cash I have I will be doing my self a lot of good if I find an institution or person who is willing to borrow me N10m at say 2% to pay back in five or ten years. This simply means that in three months I can net you off while I free myself from that N10m liability for another 5 or 10 years at a much cheaper rate than I initially incurred when I borrowed from you.This way the benefit to me extends beyond your own happiness of getting your ROI as at when due, to goodwill to me because the next time I come borrowing again you will eagerly oblige me. I hope this is simple enough for you to understand.

      • Arabakpura

        That’s exactly what the people expect the National Assembly to do and the executive to explain! Everybody cannot be financial gurus but when things are explained in the best lay language,it may assuage skepticism! Once beaten “fourwise” shy!

        • Kay Soyemi (Esq.)

          That’s one of the facts I respect most about you; being open minded.

          • emmanuel

            Respect what, that he in company of your dull minds sold a bad product (Buhari) to Nigerians in 2015?
            Fortunately for him, he has woken up from the shock, while you still wallow in your Islam driven love for a failed leader.
            Even your master in Budillon has technically seen the light

      • chinedu

        Thanks for the simple explanation. I think the major problem is with the finance minister explaining our entire economic situation and then put forward their proposals on how to tackle the issues. What we seem to have seen with this administration is so many divergent pocket efforts at a myriad of problems. This uncoordinated approach lack the desired bite and looks scary. That is why a lot of us think that we lack the needed team that can take us off the woods.

      • man leader

        Thank you for this economics class. And you wonder why it is difficult for Buhari (and our leaders) to keep it simple. Buhari can tell us how much he spent on fueling plane to and from London and parking ; x amount on Dr’s fee; x amount on drugs… Why is it DIFFICULT !! He showed the word how simple he was, watching the TV on a 32” screen.
        Believe me if there is transparency our anxiety will be done with and Buhari will have more sympathy about the economic situation.

    • Kay Soyemi (Esq.)

      Please hide that ignorance you just spewed publicly.

      Being an economic illiterate doesn’t give you the licence to display it openly.

      Restructuring short term debt for longer term eases the debt burden and frees up funds for other expenditures. The downside to it simply that longer term debts are more expensive.

      The salient questions should be how did the government that procured the debt initially plan to repay and what are the plans by the current government to fund the refinancing without piling up more debt for future Nigerians.

      • FreeNigeria

        Ok smart man, go ahead and continue to support the cow head Buhari blindly. Regardless of how you try to spin it, we’re still borrowing to pay another loan. What was the initial loan used for? Buhari has been borrowing from day one. This cow head mallam will leave us so indebted by the time he leaves office with nothing to show for it.

        • Kay Soyemi (Esq.)

          Please feel free to continue displaying your cerebral paucity.

          The debt wasn’t incurred by this government so you would do well to ask your Hero.

          Don’t be surprised if it was treated the same way they treated the $2.1bn arms loan.

          • FreeNigeria

            They are all the same worthless politicians and wicked Nigerians. So keep on calling me names, hopefully we’ll be alive to discuss how they wasted the money. Enjoy your day Kay!

          • emmanuel

            Soyemi is an ignorant semi-literate; who prides himself as knowledgeable, while he is indeed an unexposed bag of visceral follower of dead woods

  • emmanuel

    Official rate is N1.75 trillion. Is this why he said his budget is the highest so far? Why is Saraki becoming a bigger f*ol? Should such letter be read at the senate at all? Meanwhile they sain they had released N430 billion plus N100 billion last week, make it N530 billion. If that is deducted from the years capital buget of N1.7 trillion iy gives a shortfall of N1.18 trillion
    Buhari has gone mad. Does he expect Nigeria to end after his four years or how does he think the monies would be paid?
    My plea to foreign lenders, Crude Oil price is crashing and in the next three years, it would be terribly down. We do not have money to pay you back, please do not give us loan.
    We cannot pay you with the tax from 70 metric tonnes of Yam Tubers.
    BUHARI HAS TURNED NIGERIA TO A JOKE.

    • aboki

      Sentiments and hatred has defined your ignorance of economic factors and the benefits of foreign and domestic loans to service or implement projects.
      Why the insults ?
      U S A is the highest debtor in the global arena despite the largest or biggest economy as defined by economists.
      It’s a continuous process with or without Nigeria as a nation as per your focused or wishes.
      You may wish to allow expertise input on economic policies, avoid indulging yourself into an issue that you know nothing .
      Nigeria we hail thee!

      • Arabakpura

        Let them first account for the ones they have borrowed but remember the man does not like to account! He spent our money in London, came back and told us that he was not going to give account! You don’t blame anybody who has stopped trusting Gen Buhari!

      • emmanuel

        USA? Which loans are to be serviced?
        Those same loans will not be negotiated, but they would rather borrow more for stealing ahead of 2019 election, When a dead wood can only be advertised for another tern in 2019. If there is stupendous monies to waste from the war chest of these phantom debt restructuring.
        This same government told us some four weeks ago that they had concessioned Toll gate Lagos to Apapa Wharf to Dangote for rehabilitation at a concession of ten years tax waivers.
        At this point, there was no Bill of quantity, design drawings or any meaningful documentation. A few days after, Dangote said it was a lie.
        These mad cows can only be believed by un-hateful people like you.

    • Baba B

      See how stupidity reigns in your life. I have said it and will repeat it here that i am amazed at how idiots like you come to a public space like this to advertise your stupidity simply because you can read and write. IN your hate filled mind you have just successfully ran an analysis on the 2017 budget. Mumu

  • emmanuel

    Awogbeoba, Onike, Soyemi, Rommel, Julies, Ade, Maria, Comfort, Mumu Ola, etc. Una cup don full.

  • thusspokez

    while the loan will be used in refinancing of maturing domestic debts.

    Way to Paris Club Debt MkII — Debts in the early 1980s which ballooned to more than $35bn due to penalties and late fees during the 1990s.

  • DAVID DOGO

    We don’t trust you anymore sir. Please don’t borrow anymore money until you jail all looters of our common wealth!

    • emmanuel

      Who would jail him then? Have you not heard that the Accountant General has said he cannot reconcile the TSA, while almost all recovered monies are missing? Also, that the APC hid stolen $289 million with Mr. Oke as their treasurer from where he stole $43 billion?
      The stealing in Abacha and the last Government put together cannot rival Buhari’s. If he collects these loans, the roads will still remain unprepared.
      Buhari is a curse.

      • Voice of the oppressed

        You are accountable for what your mouth says. Baseless accusation is sin punishable by God. Think twice

        • Kay Soyemi (Esq.)

          You presume the dolt had any sense to appeal to?

          Don’t waste your time.

          • emmanuel

            Hahahahaa, a dolt? If i am a dolt, then the world i leave in must be inhabited by extra cerebral terrestial beings.
            just like an arrogant ignorant illiterate on issues of academia, so you are on every issue brought to the fore as regards Nigeria’s existence and development.
            You are blinded by your poor exposure and cannot see reason in issues that concerns human development and developmental indices.
            I am yet to come to terms with how you became a Lawyer. If you prove to be learned and know nothing about simple economics, borrowing and usage of money, then you ought to work with the Oshodi NURTW Chairman as a PA.
            When i talked about TSA being plundered about two months ago, it was beer parlour gist, what did you call it when the AG raised the alarm?

    • Arabakpura

      We don’t at all! The man has spent all his moral and integrity savings accounts; the accounts are reading zero!

    • Voice of the oppressed

      Where is the money to run the government. Tell the senate to do needful, they are holding the progress wheel of this nation. That is democracy for you

      • bala

        The state governors have run the Nation dry, lets wait for another drips from the oil sky. sorry there is drought even in USA Europe and Russia except in China, but all the same China has no clear SKY It is OZONE all the way.

        • emmanuel

          Meaning what? It is the state governors that are stealing from the TSA today or giving out fake contracts from NNPC?

      • man leader

        What is needful? The NA is nothing but a collection of criminals, ex-convicts and narcissists.

  • Jon

    My take is this:

    Southern Nigeria knows 100% that Buhari and his parasitic Northern Nigeria cannot survive without Southern Nigeria. So, why can’t Southern Nigeria use that as a leverage to sound a note warning to the parasitic North to choose one of this: RESTRUCTURE or De-amalgamation. This restructuring thing needs be done really quick before Buhari, Baru and their parasitic North steal Southern oil revenue dry.

    • Voice of the oppressed

      Must you be abusive to make point.

      • Jon

        The South has been enslaved for the past 57 years. The South is angry now. The South is saying enough is enough. Freedom is all that the whole South is seeking and must get it by any means necessary.

      • Jon

        Sometimes, one writes to get to their skin such that, they will tell the South to go to hell and let’s break this Nigeria. Would it get to their skin to do that? Only time will tell.

  • Arabakpura

    Which one will be used for the construction of the 2nd Niger bridge? This request needs further scrutiny!

    • emmanuel

      I beg go sidon. Just let Amaechi your god remain in oblivion. Weep not child!

      • Arabakpura

        Have you eaten the insane root that takes the reason prisoner? Are you sure you are ok?

  • Dazmillion

    Demented Buhari looking for another round of loans to fund his pie in the sky 2019 re-election campaign.

  • bala

    The whole world of financial institutions are wary and unconvinced of the political and social stability of Nigeria hence reluctant further wholehearted lnvestment.

  • LadyRosely

    Why not borrow from NNPC. They are rich these days …$25 billion would not be so flippantly Awarded in contracts

    • emmanuel

      I wander ooooo.
      Good advice. Afterall, what will be stolen from the $26 billion contracts must be over $15 billion.

  • forestgee

    I hope Nigeria will not be sold before 2019! The lack of vision and basic economic strategy by this government is worrisome.

  • Khafilat Adeoye

    GOING BY BUHARI-BACKED NNPC CORRUPT WAYS & MEANS ……. BUHARI DOES NOT NEED THE SENATE

    “However, more probing questions have to be asked for the benefit of the divided public: how many NNPC contracts have been tabled before the FEC in the last two years, and what is their status? There is more to this matter than we know.” …. Reuben Abati.

    What use is Buhari writing Senate and seeking approval for a mere N5.5billion loan when Buhari and his kinsman Baru Maikanti at NNPC single-handedly approved over N9Trillion ($26Bilion) worth of shady corrupt transactions without recourse to NNPC Board and/or FEC (Federal Executive Council).

    Just like the NNPC Board, I insist Buhari does not need the Senate for anything ……. corruption all the way!

  • emmanuel

    “The Federal Government on Tuesday explained why exported yams were rotten, which was due to long distance before arriving its destination in the United States of America, USA”
    They abandoned industrial goods at the ports just to export tubers of yam; with total value that was less than the value of one container of finished goods for export. A case was one of my client’s who had over twenty six containers abandoned in the port for over six weeks. At the end of the day, it was tales of rotten Yams.
    How we got a government of dead brain humans whose past times was propaganda, lies and visionsless leadership.
    The next moment they lie that they are the largest producer of Rice globally, are these people not insane?

    • man leader

      Yes we can conclude that they are INSANE . But why do we keep voting in “insane ” people. You wonder who is then insane; the voters or the voted

      • emmanuel

        The vote Buhari got was not enough to give him victory. Why do our leaders rig their way into office.
        Kano INEC man was burnt to death with his young family because he insisted the votes reported was fraud and he would testify against Buhari in court.
        In spite of all the rigging for Buhari in Lagos, the difference in both candidates votes was not upto seven percent

    • laki

      But Ghana export yam to the USA. How come their yam is not rotten? They need to understand the process needed before export

  • Timothy

    Perfect timing to distract the nation from the NNPC mess…presidency knows a lot of questions are being asked…Magu should be opening a new file for the case against Baru and be ready to act once called…and before I forget the Senate were wondering why presidency was not implementing the budget….well here is your answer now what do we do? Take more loan or just forget the whole thing…..or you can actually go and find out if what the NNPC mess is all about…oversight functions is what you guys are good at…you can call custom chief ( for sake of uniform) …call IG no petition (because he loves and promoted a junior officer)…call Health minister (just because he wanted to correct a subordinate) no petition but this one you dont want to call…abi? Or you need an invitation or petition to warrant your calling them both?

    • emmanuel

      You right. It is part of the reason why Buhari made himself Oil Minister so that he would not be answerable to anybody and his boy Baru is also not answerable.
      Nigeria needs to be fragmented.
      It is a waste

      • Timothy

        No my brother…we dont kill a child because he failed an exam…we dont always looking at the past and learning from history…that has been our problem…we think of new ideas everytime but never learn why the old ones didnt work…people make up this country called Nigeria and still (if we break up) its still the same people that will make up those fragments…we need to identify what our problem is from the grassroots because it seems we are breeding corrupt people from birth because as soon as the occupy political office they just change and start acting funny…so we either ask ourselves where our problem is or we will continue to make mistakes

        • emmanuel

          The major problem is very powerful centre where ethnic champions go to steal and are celebrated. If we do not restructure Nigeria, then it must go.
          There cannot be any progress in hundred of years to come, even if we get the best leaders. Ethnic champions would still fight from behind.
          How do you think the richest man in Africa was made? Go back history of Cement Quota import licence in 1977, how for ethnic patronage several cement importers were pulled down to instal a man – ethnic patronage.

          • Timothy

            You have bits of information but you dont have it all and please I need you to have an open mind and its not particular to the center as you claim its particular to the people…here is the issue here…even in the local govt there is fraud going on and no one is saying anything…as well as the state because no one dares say anything to a sitting governor….we cant even make a law to empower the people to go after a governor if he misbehaves…the people are not even united on what they truly want…its not peculiar to the center alone…once we fragment what will you say about people in Edo, Delta, Benue, Bayelsa, Rivers who have more than one language and dont understand each other but lumped up as a state….what happens when a man from the oil producing side decides what the man in a non-oil producing side in the same state should do or if he doesnt like he should get out? We truly need to understand that the problem is not a particular set of people….but the people all over…starting from the grassroot..we need to ask ourselves WHAT DO WE REALLY WANT

          • Baba B

            Thank you very much! But you are truly talking to the wrong person here, because he is obviously one of those who had hitherto partaken in the wanton stealing of our common patrimony and has signed in here using a fake name to instigate some uninformed persons to reason like him. Just go and read all his post to see how he has been trying so hard to misrepresent facts.

          • emmanuel

            Hahahahahaha, the PDP do not know me, and i do not speak for anyone.
            Unfortunately for you, i am a private business person with no single link to government. I am proud i help put the thieving crooks on their heels.
            VERY SORRY YOU CANNOT TAKE MY STANCE, BUT THE TRUTH REMAINS, WHAT WE HAVE IN NIGERIA TODAY IS A BAND OF CROOKS AND ROGUES RUNNING RINGS OF CRASS CORRUPTION AROUND WHAT THEY CALL FIGHT AGAINST CORRUPTION.
            HOW CAN CORRUPTION FIGHT ITSELF?

    • man leader

      Great observations. Let’s wait and see. Unfortunately nothing positive will come out of them. I’m saddened that this country is what it is after 57 years and still no hope.

  • FreeNigeria

    That’s our dream and prayer, unfortunately, it’ll not be delivered by the rejects we have running the country. They benefited from a great Nigeria, but they are now killing her and denying the younger generations the opportunity they were given. God dey oooooooo

  • Emona

    You want to borrow 3 billion dollars when Mr. Baru your NNPC GMD allegedly diverted 25 billion dollars! This is absolute wickedness and what I call an attempt to distract Nigerians from the main truth about the alleged NNPC fraud.