Buhari seeks Senate approval for fresh $5.5bn foreign loan

President Muhammadu Buhari has written a letter to the Senate of the Federal Republic of Nigeria seeking approval for a loan request of $6.5 billion.
Buhari’s appeal was contained in a letter read on the floor of Upper Legistive Chamber by the President of the Senate, Senator Bukola Saraki, on Tuesday.
According to the letter, the President said the loans will be sourced through issuance of Euro and Diaspora bonds and the borrowing will be used to fund capital projects.
Projects listed by Buhari in the letter include the construction of Mabila power project in Taraba State, construction of second runway of Abuja Airport and other major projects across the country.
The President also said part of foreign loans will be used to refinance local debts.
The letter shows that $3 billion is being sought though external loan while the approval being sought for the $2.5 billion Eurobond or Diaspora bond in the international market.
The President explained that the bonds issued will be channelled towards funding of the 2017 budget while the loan will be used in refinancing of maturing domestic debts.