Why Buhari Wants To Borrow $6 Billion – Debt Office

• “The new capital raising has already been approved and is now being presented to NASS”

The Debt Management Office (DMO) has disclosed the reason behind President Muhammadu Buhari fresh $6 billion loan request.

Buhari had, On Tuesday, sought the approval of the national assembly the loan request.

Buhari said the sum — approximately $6.183 billion — will be raised from multilateral and bilateral tenders as well as the international capital market.

However, the DMO said the $6 billion (N2.34 trillion) loan request by Buhari was already captured in the 2021 budget.

“His Excellency, President Muhammadu Buhari, has recently written a letter to the National Assembly (NASS) requesting for the approval, by resolution of N2.343 Trillion new external capital raising,” a statement issued on Tuesday by DMO read.

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“The proposed new capital raising, is the New External Borrowing already provided for in the 2021 Appropriation Act. It will be recalled that the President signed the 2021 Appropriation Bill which included New Domestic and New External Borrowing into law after the approval of NASS.

“Accordingly, 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 agency explained that the proceeds of the loan 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.