Nigeria’s Senate approves Buhari’s $5.5bn foreign loan request

The Nigeria’s Senate Tuesday approved a $5.5 billion external loan request by President Muhammadu Buhari.

The president had in a letter on October 10, requested the upper chamber to approve $3 billion external loan and $2.5 billion Eurobond or Diaspora bond in the international market.

Buhari explained that the bonds would be channelled towards funding the 2017 budget, while the loan would be used in refinancing maturing domestic debts.

Based on the Senate’s resolution, the Committee on Local and Foreign Debts on October 19 invited the Minister of Transportation, Rotimi Amaechi, and some other members of the executive to explain the benefits of the loan.

Presenting the report of the committee, Shehu Sani, Kaduna-APC, said the projects listed for the loan would stimulate economic development and create direct and indirect jobs for Nigerians. He added that the $2.5 billion will create more borrowing space for the private sector.