President Muhammadu Buhari, on Tuesday, urged the Senate to approve a new external loan of N2.34trillion, about $6.183billion, for the Federal Government to finance the 2021 budget deficit.
Senate President Ahmad Lawan read Buhari’s letter of request on the floor of the Senate at plenary..
Buhari said the request was in line with the provisions of section 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act 2003.
He said the loan would be sourced from a combination of multilateral and bilateral lenders and International Capital Market (ICM) through issuance of Euro bonds.
Buhari said accessing the ICM would be relatively cheaper, thereby moderating debt service cost and ensuring increase in external reserve.