President Muhammadu Buhari has written the National Assembly, demanding for approval of fresh external loan.

In the letter forwarded to the legislative body and read by Senate President Ahmad Lawan on the floor of the upper chamber u on Tuesday, Buhari’s government is seeking the sum of $4,054,476,863 and €710 million in an addendum to the 2018-2020 borrowing plan.

Buhari is also seeking the nation’s legislature’s approval for grant components of $125 million.

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“The distinguished Senate President may recall that I submitted a request on 2018-2020 borrowing plan for the approval of the senate in May 2021.

“However, in view of other emerging needs and to ensure that all critical projects approved by Federal Executive Council as of June 2021 are incorporated, I hereby forward an addendum to the proposed borrowing plan.

“The projects listed in the external borrowing plan are to be financed through sovereign loans from the World Bank, French Development Agency, EXIM Bank and IFAD in the total sum of $4,054,476,863 and €710 million and grant components of $125 million,” the letter read in part.

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As explained in the letter, “emerging needs”, have warranted thr need to raise more funds for some “critical projects”.

The President said if approved, the loans will stimulate the economy and create jobs.

In July, the national assembly approved the sums of $8.3 billion and €490 million loans contained in the initial 2018-2020 borrowing plan.

With the current $1 to N550 exchange rate, the new loan of $4 billion is equivalent to N2.2 trillion.

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Already, the 2021 budget has a deficit of N5.6 trillion.

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