Nigeria eyes greater recession as Buhari’s $5.5bn loan request gains approval

Obinwannem News Nigeria eyes greater recession as Buhari’s $5.5bn loan request gains approval

The Senate President, Ahmad Lawan, has on Tuesday, ordered boards of committee for local and foreign debts to work on the documents of an external loan request of $5,513,000,000 submitted by the President, Muhammadu Buhari on Thursday.

As a result of recent diminishing oil revenue by the effects of the COVID-19 pandemic, the president had claimed that the approved loan request would enable his APC led government to fund the review of 2020 budget.

Obinwannem news learnt that the loan will be funded from the International Monetary Fund which was proposed to finance the 2020 revised budget fiscal, via the Multilateral and Bilateral Institutions are $3,400,000,000.

A source further revealed how it sought $1.5bn from the World Bank, which would also be used to finance the 2020 revised budget deficit The red chamber is also seeking $500m from the African Development Banks to be utilised for the COVID-19 crises response Budget as well as to support Operation to part-finance the 2020 revised budget fiscal.

Recall also, that the Federal Government is also seeking an extra $113 million from the Islamic Development Bank to part-finance the said 2020 alter budget fiscal.

The panel noted that the terms and conditions of the loans from each lender were as contained in a duly executed Loan Agreements that would be forwarded to the National Assembly for proper documentation.

Senator Clifford Ordia, being the Chairman of the Senate Committee on Local and Foreign Debts, presented the report of his panel while the Senate have it.

Nwada Ugochinyere Onyechere reporting, Obinwannem News

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