The Nigerian Lawmakers at the Upper chamber of the National assembly given its consent to the newly proposed external loan request of President Muhammadu Buhari led administration.
Naija News learnt that the approval of Buhari’s $5.513bn external borrowing request came following considerations and adoption of the report of the Senate Committee on Local and Foreign Debts. However, it will be recalled that the new external loan has generated several rection from many public opinion leader and analyst with reference to the upcoming recession into the nigerian economy.
Meanwhile, Giving a breakdown into the sources of the loan request, Chairman of the Committee, Senator Clifford Ordia said the Federal Government would source $3,400,000,000 at one percent interest rate from the International Monetary Fund (IMF) for Rapid Financing Instrument to part-finance 2020 proposed revised budget.
According to the lawmaker, the Federal Government would also source the sum of $1,500,000,000 from the World Bank for Development Policy Financing of the revised 2020 budget at 2.38 percent interest rate and another $500,000,000 from the African Development Bank (AfDB) for COVID-19 crises response budget support operation to finance revised budget deficit at 1.315 percent interest rate.
The Islamic Development Bank (IsDB) is also expected to give a loan of $113,000,000 to the Federal Government of Nigeria to part finance the 2020 revised budget deficit at 0.4 percent interest rate. Naija News also recalls that the Debt Management Office has put the deficit financing of the revised N10.509trn 2020 budget proposal at N4.563trn. T