Buhari Seeks Approval From Lawmakers for Fresh $6b Loan

Buhari Seeks Approval From Lawmakers for Fresh $6-Billion Loan

By Chuks Emele

Nigerian President Muhammadu Bugari is seeking lawmakers approval for a fresh $6.18 billion foreign loan to support deficit spending.

In a letter read by Senate President Ahmed Lawan during Tuesday’s proceedings, Buhari said the loan will go toward funding key infrastructure projects as well as health and education.

Lawmakers last month approved borrowing of separate tranches of $1.5 billion and 995 million euros to shore up government finances. Nigeria has seen a sharp drop in revenue since the price of crude oil, its main export, plunged last year in the wake of the coronavirus pandemic.

The government has responded with increased borrowing from both local and external sources to meets its financial obligations.

The decision to increase foreign loans contradict an assertion by Finance Minister Zainab Ahmed in January that the government didn’t intend to make any external borrowings this year.