Buhari To Borrow Fresh Loan Of $5.513bn To Finance Revised 2020 Budget:

Buhari To Borrow Fresh $5.513bn Loan To Finance Revised 2020 Budget:

President Muhammadu Buhari has written to the National Assembly to seek a fresh $5.513bn external loan to finance the revised 2020 budget – Channel TV.

Ahmed Lawan, the Senate President has read the letter to National Assembly on Thursday during plenary.

Sources that monitored the letter on Thursday stressed that the President explained the loan will be “used to finance the deficit in the 2020 budget and support critical projects from the State and Federal Government”

President Buhari In the letter stated that Federal Government is also considering to raise money both internal and external.

According to the source, The external loan is $5.513 billion; $3.4bn will come from the IMF, $1.5 from the World Bank, $500m from (AfDB), and $113m from the Islamic Development Bank (IsDB).

The President further noted that the assumptions in the 2020 budget are no longer attainable given the reduction in oil prices and lower demand for crude oil because of the coronavirus pandemic.

As a matter of fact, he also presented an Appropriation Bill and 2020-2022 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) to the Senate.

President Buhari is asking the Senate to give use the simple passage of the revised 2020 budget and MTEF because of the exigency its usage.

The Senate has, however, suspended its policies and started the second reading of the revised budget, the MTEF, and the FSP. read the letter to lawmakers during session on Thursday.

Image: Muhammadu Buhari’s file

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