The Senate has begun the consideration of the request by President Muhammadu Buhari for the approval of a $5.5 billion loan.
Buhari explained in the letter to the Senate that the money would be used to finance the 2017 budget while $3 billion would be used to re-finance domestic debts.
At the session on Thursday, the Senate Leader, Ahmed Lawan moved the motion for the consideration of the request.
Subsequently, the Deputy Senate President, Ike Ekweremadu, referred it to the Local and Foreign Debt Committee.
The committee is expected to report to the plenary after its consideration in two weeks time.
The letter by the president reads in part: “The senate may wish to refer to 2017 appropriation Act which has a deficit of 2.356 trillion and provisions for near borrowings 2.321 trillion.
“The Act also provides for 1.254 trillion and external borrowing of 1.067 trillion about $3.5 billion. Issuance of $2.5 billion for financing the 2017 appropriation Act.
“The Senate may wish to know that in order to implement the external borrowings approved by the National Assembly in the 2017 appropriation act, the FGN issued $300 million diaspora fund in the International Capital Market ICM in June 2017.
“The balance of the 2017 external borrowing in the sum of $3.2 billion is planned to be partially sourced in the ICM of $2.5 billion through Eurobonds or a combination of Eurobonds and Diaspora bonds while $700 billion is proposed to be raised from multilateral sources.”