The Debt Management Office (DMO) has defended President Muhammadu Buhari’s request for N2.343 trillion new borrowing, as it stated that the facility was captured in the 2021 budget.
DMO made the disclosure via its Twitter handle on Tuesday after the President requested that the National Assembly should approve the new borrowing to fund critical capital projects in the 2021 budget.
CLARIFICATION ON MR PRESIDENT’S REQUEST FOR NASS’S RESOLUTION FOR N2.343TRILLION NEW CAPITAL RAISING:
— DMO Nigeria (@DMONigeria) May 18, 2021
DMO explained that proceeds of the loan were to be deployed to capital projects in various sectors of the economy.
It tweeted, “President Muhammadu Buhari has recently written a letter to the National Assembly 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 National Assembly (NASS).”
According to the DMO, the presentation to NASS was in fulfilment of an enabling debt management legislature.
“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 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,” it added.
What you should know
President Muhammadu Buhari sent a letter to the Nigerian Senate requesting the external loan for approval to fund the 2021 Appropriations Act, according to Nairametrics.
This was disclosed on Tuesday, as the Senate President, Ahmed Lawan read the letter from the presidency requesting approval.
What the Senate said:
“Senate President, Ahmed Lawan reads a letter from President requesting for the Resolution of the National Assembly for the implementation of the external borrowing of 2.18 billion dollars in the 2021 Appropriations Act and Request for the approval of Donor Funded Projects under the 2018-2020 Federal Government external borrowing rolling plan,” the Senate said in a statement.