House of Representatives approves $5bn external loan

Nigerian House of Representatives has approved five billion dollar external loan request to fund the 2017 budget deficit.

This followed a unanimous adoption of the report of the House of Representatives Committee on Loans and Debt Management presented before the House on Tuesday.

Presenting the report, the chairman of the committee, Mr. Adeyinka Ajayi, said the loan facility would be acquired at international capital market through Eurobonds and Diaspora Bonds.

President Muhammadu Buhari in October, sent the loan request to the National Assembly to allow government execute some capital projects through the 2017 budget.

Out of the money to be borrowed, $3bn would be used to refinance maturing domestic debt obligation.

The President while laying the 2018 budget proposal last week, promised that once the loan facility was secured, the 2017 budget performance would scale up with the eventual release of capital fund to various agencies of government.

Source: Voice of Nigeria