President Muhammadu Buhari’s $5.513 billion external loan request to finance the revised 2020 budget, has been approved by the senate
Though the senate stood down a component of loan
which the federal government said will help in execution of its
priority projects and for projects to support State Governments in
stimulating their economy which has been adversely affected by the
COVID-19 pandemic on grounds of lacking requisite details, the loan
request was however approved after presentation and consideration of
the report of the Senate Committee on Local and Foreign Debts.
Lenders for the federal government’s priority projects as approved by
the Senate are: the AfDB – $125million to strengthen healthcare system
and improve response to COVID-19 and $23 million for financing
smallholder farmers to mitigate food security impact of the COVID-19
Pandemic, $600million from the Islamic Development Bank to support
Nigeria’s response to challenges posed by COVID-19 and $500 million from
the African Export-Import Bank to provide critical Medical supplies to
combat COVID-19.
The Federal Government’s intention of borrowing €995million from the
Export-Import Bank of Brazil to support Green imperative and enhance the
mechanisation of agriculture and agro-processing in Nigeria, was put in
abeyance by the upper chamber.
The $500 – $750 million also being negotiated with the World Bank for
State Fiscal Transparency and Sustainability Program to provide fiscal
support to the States was not approved.
The ongoing negotiation by the Federal Government with the World Bank
for between $500million – $750 million for COVID-19 Action Recovery and
Economic Stimulus Program to support state-level efforts to protect
livelihoods, ensure food security and stimulate economic activities, is
also yet to be approved.
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