In a bid to ensure funding of the 2016 budget deficit, the Senate on Wednesday approved the request by President Muhammadu Buhari for $500 million Eurobond in the International Capital Market.
Deputy Leader of the Senate, Bala Na’Allah, who moved the motion for approval, cited the urgency of the request and urged his colleagues to approve.
The motion was promptly seconded by the Minority Leader, Senator Godswill Akpabio, consequent upon which the request was unanimously approved.
Prompt News recalls that Vice President Yemi Osinbajo, on behalf of the President had on March 15, submitted the written request to the Senate for approval.
The letter reads in part, “The senate may wish to refer to item 229 and 244 of the 2016 Federal Government of Nigeria Appropriation Act which provided for a deficit of N2, 204.74 billion and new borrowings of N1, 818.68 billion, respectively.
“The Act also provided for domestic borrowing of N1, 182.80 billion and external borrowing N635.88 billion in line with item 245 and 246, respectively.
“The Senate may also wish to note that while the approved domestic borrowing has been fully incurred, the N635.88 billion on external borrowing has not been fully accessed.
“The external borrowing incurred today consists of $600 million from the African Development Bank and one billion dollars Euro Bond for the International Capital Market (ICM) only.
“The senate may wish to note that the proceeds of the Euro Bond are to be used as funding sources to finance the budget deficit, including capital expenditure projects as specified in the 2016 Appropriation Act.”
