President Muhammadu Buhari has formally written to the Senate and the House of Representatives, to approve a loan request of $5.5 billion.
The request was contained in a letter to both chambers of the National Assembly, which was read by the Senate President, Bukola Saraki, at the plenary on Tuesday.
According to the letter addressed to the Saraki, a copy of which was read on the floor of the Red Chamber on Tuesday, the loans will be sourced through the issuance of Euro and Diaspora bonds.
Buhari said the borrowings will be used to fund capital projects. Some of the projects listed by President Buhari in the letter include the construction of Mabila power project in Taraba State, construction of the second runway of Abuja Airport and other major projects across the country.
Part of the foreign loans will be used to refinance local debts.
The letter read in part, “Accordingly, the Senate is requested to kindly approve the following external borrowings: Issuance of $2.5bn in International Capital Market through Eurobonds or a combination of Eurobonds and Diaspora bonds for the financing of the Federal Government of Nigeria’s 2017 Appropriation Act and capital expenditure
projects in the Act.
“Issuance of Eurobond in the ICM and/or loans syndication by the banks in the sum of $3bn for refinancing of maturing domestic debts obligations of the Federal Government of Nigeria, while looking forward to the timely approval of the National Assembly to enable Nigerians to take advantage of these opportunities for funding.”