President Muhammadu Buhari has written to the House of Representatives, for the approval of N850 billion loan.
The lawmakers read the letter on the floor of the House during its plenary session on Tuesday.
The letter explained that the N850 billion loan is to be sourced from domestic capital market to finance critical projects in the 2020 budget.
The letter reads in part:
“To ensure that there are adequate funds to finance critical projects and programmes in the 2020 Budget, I hereby seek the Senate’s approval, by Resolution, to raise the N850bn of New External Borrowing, in Naira, from the Domestic Capital Market, instead of from the International Capital Markets.”
Buhari’s letter, however, provided no details of the “critical projects and programmes” to be financed with the loan.
The Debt Management Office (DMO) had however said that the N850 billion loan is not a new borrowing but a mere fiscal step of converting external borrowing to domestic alternative for the purposes of achieving fiscal efficiency of the 2020 budget.