DMO Says Fresh $6.183bn Loan Request Captured In 2021 Budget
The Debt Management Office (DMO) has explained that the fresh loan request by President Muhammadu Buhari is already captured in the 2021 budget that is being implemented.
The DMO in a statement stated that the $6.183 billion (N2.34 trillion) loan request that President Muhammadu Buhari asked the National Assembly to approve the loan request will be raised from Eurobonds through the international capital market.
However, the DMO in a clarification said the loan request was not new, adding that it was in fulfillment of the provisions of Sections 21 and 27 of the Debt Management Office (Establishment, Etc.) Act, 2003.
The statement read, “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,”
“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.”
According to the debt office, “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.
Comments are closed.