The Debt Management Office has said that the request by President Muhammadu Buhari for the approval of N2.34trn, equivalent to $6.18bn is not new as it was part of the external borrowing captured in the N13.59trn 2021 budget.
It said this in a statement on Wednesday clarifying a letter read at the National Assembly on Tuesday requesting the Senate to approve N2.34trn.
DMO said, “President Muhammadu Buhari, has recently written a letter to the National Assembly (NASS) requesting for the approval, by resolution of N2.343trillion new external capital raising.
“The proposed new capital raising, is the New External Borrowing provided for in the 2021 Appropriation Act.”
DMO further explained that Buhari had signed the 2021 Appropriation Bill which included new domestic and new external borrowing into law after the approval of the National Assembly.
The $2.34trn was part of the borrowing, according to the DMO.
It added, “The new capital raising has already been approved and is now being presented to NASS in order to fulfil the provisions of Sections 21 and 27 of the Debt Management Office (Establishment, Etc.) Act, 2003.
“The proceeds are to be deployed to capital projects in various sectors of the economy including power, transport, agriculture and rural development, education, health and water resources that are included in the 2021 Appropriation Act.”
The new loan according to Buhari’s letter would enable government to ensure “employment generation and poverty reduction, as well as protection the most vulnerable and very poor segments of the Nigerian Society.”
Funding for the loan is to be sourced from international financial institutions such as the World Bank, African Development Bank, French Development Ban and China EXIMBank.
Others are Islamic Development Bank and the International Fund for Agricultural Development (IFAD).