Nigeria’s Debt Hits $42.7tn As Senate Approves Fresh $16bn Loan Request

Democracy Day
President Muhammadu Buhari

The senate, on Wednesday, approved President Muhammadu Buhari’s request for fresh $16bn and €1.02bn loans.

As a result of the approval, Nigeria’s debt stock of N35.5tn will rise to N42.7tn.

The senate had considered a report of the Committee on Local and Foreign Debt on the proposed 2018-2020 External Borrowing (Rolling) before approving the fresh loans.

Senator Clifford Ordia, who Chaired the Committee, said in his presentation that Buhari’s request was in compliance with the provisions of the Debt Management Office (Establishment) Act, 2003 and the Fiscal Responsibility Act, 2007.

A breakdown of the $16.2bn loan shows that it is equivalent to N6.7tn using the Importers and Exporters’ Window exchange rate of N411.24/$1, while the €1.02bn is equal to N485.5bn using the Central Bank of Nigeria’s exchange rate f N476/ €1.

VANTAGE NEWS reports that the Senate had yesterday approved the latest foreign loan plans of Buhari which include the approval of $125m to fund some “legacy projects” of the current administration.

The request of the Bank of Industries for the issuance of €500m, but not more than €750m Eurobond in the international capital market was also approved by the senate during Wednesday’s plenary.

VANTAGE NEWS reports that the approval of the loan requests was not without terms and conditions.

The approval was accompanied by a resolution that the terms and conditions of the loans from the funding agencies be forwarded to the National Assembly prior to their execution for approval and proper documentation.


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