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President Buhari Seeks approval for more loans.

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President Buhari.

President Muhammadu Buhari is seeking to borrow another $6.1billion from bilateral and multilateral organisations to fund the deficit in the 2021 budget.

The president, in a letter to both chambers of the National Assembly on Tuesday, asked for their approval to take the fresh loan.

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The Deputy Speaker of the House of Representatives, Idris Wase, read the letter from the president during the plenary.

The President of the Senate, Ahmad Lawan, read the letter during the plenary session of the upper legislative chamber on Tuesday.

Using the $1 to N379 exchange rate, the new loan will amount to about N2.343 trillion.

The 2021 budget has a deficit of N5.6trillion.

Mr Buhari disclosed that the National Assembly already approved the borrowing of N4.6 trillion in the 2021 Appropriation Act.

He noted that the new borrowing of N2.3 trillion will part-finance the deficit in the 2021 budget.

“The 2021 Appropriation Act provides for N4,686,775,885,696.00 as New Borrowings (item No. 328) to part-finance the 2021 Fiscal Deficit, of which 50% or N2,343,387,942,848.00 (about USD 6,183,081 ,643.40 at the Budget Exchange Rate of USD1.00/N379) is specified as New External Borrowing,” Mr Buhari’s letter reads in part.

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