President Buhari Demands Fresh $2.18 Billion Loan, Gives Reason for Borrowing Funds

President Buhari Demands Fresh $2.18 Billion Loan, Gives Reason for Borrowing Funds

- Nigeria's debt profile would be increased if the Senate approves the latest loan request by the federal government

- President Buhari has explained what the loan will be used for if granted

- Some Nigerians have raised concerns over Nigeria's rising external debts

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President Muhammadu Buhari has asked the Nigerian Senate to approve an external loan of 2.18 billion dollars.

The president’s request was contained in a letter read by the Senate president, Ahmed Lawan, during plenary on Tuesday, May 18.

BREAKING: Buhari seeks new N2.342tr external loan BREAKING: Buhari seeks new N2.342tr external loan
The Senate has not yet approved the loan request. Photo: Femi Adesina
Source: Facebook

The Nigerian Senate disclosed on its Twitter account that the loan was demanded by the federal government to finance the 2021 budget deficit.

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The federal government said it would use the loan to fund critical infrastructural projects in transportation, health, and education.

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Meanwhile, the federal government's move to borrow more money from external sources has certainly raised eyebrows among Nigerians.

Wale Olusi, the head of research at United Capital Plc said increased loans by the federal government will affect the country’s debt profile.

He said such actions will create more burden. on the Nigerian economy.

In another news, Nigeria's civic tech organisation, BudgIT, has revealed it discovered 316 duplicated projects valued at N39.5 billion in the 2021 budget of the Federal Government, which is financed with N13.6 trillion.

The budget tracker said such duplication creates loopholes for corruption, stating that out of the 316 duplicated projects, the Ministry of Health accounted for the highest, 115 duplications.

It further stated that non-security agencies were discovered to have requested for security funds even though they don't have the capacity to provide the security needs.

Meanwhile, Bala Mohammed, the Bauchi state governor, has said the federal government has lost ideas on how to address the various economic challenge bedeviling the nation.

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How FG's external loan will increase Nigeria’s debt profile - Financial analyst reveals

The Nation reports that Mohammed, who spoke on Thursday, May 13, at the Government House shortly after performing the Eid prayers to mark the Sallah celebration, said the federal government should stop the blame game and look for a way forward.

Mohammed blamed the nation’s backwardness on nepotism by the Buhari government, adding that there is no fairness and equitable allocation of appointments across the six geopolitical zones.


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