President Muhammadu Buhari’s request for a fresh $5.51 billion in external borrowing from international lenders has received the approval of the Senate.
The borrowing is part of a revised budget for 2020. The revisions allow for the effects of the coronavirus pandemic and a sharp drop in oil prices, which has dented Nigeria’s spending plans because oil sales make up 90% of its foreign exchange earnings.
The money from the International Monetary Fund, African Development Bank, World Bank, and the Islamic Development Bank is to fund the deficit.
“As regards the IMF loan, there are no usual onerous conditions for borrowing, such as currency devaluation and deregulation of certain sectors of the economy attached to this loan,” a Senate committee on the loans stated.
Recall that President Buhari submitted a revised budget of N10.51 trillion ($29.19 billion) to parliament last week for approval.
Lawmakers can make changes to the budget before it is sent back to the president to pass into law should he agree to the revisions.
Recall also that President Muhammadu Buhari had written to the Senate and the House of Representatives, seeking approval for a fresh loan of $5.513 billion.
In a letter read by Speaker of the House of Representatives, Femi Gbajabiamila, at the plenary on Thursday, the president said the loan was to finance the 2020 budget deficit, financing of critical projects, and supporting some states of the federation.
