Nigeria is taking another $2.86 billion foreign loan - Finance

Nigeria is taking another $2.86 billion foreign loan – Finance

  • Nigeria plans to take a new external loan in the amount of 2.86 billion dollars. USA.

  • President Muhammad Bukhari said the loan will be used to meet key projects in the 2018 budget.

  • In the country external debt amounts to $ 22.08 billion amid growing international concern.

Nigeria plans to take a fresh 2.86 billion dollars external loan to finance the budget deficit and finance key infrastructure projects in the 2018 budget.

Nigerian President, Muhammad Bukhari, in a letter addressed to the National Assembly on Tuesday, October 9, 2018, requested the approval of a new foreign loan in the amount of 2,868,540,000 US dollars.

In particular, the letter states: “In accordance with sections 21 (1) and 27 (1) of the Law on Public Administration (etc.) of 2003, I hereby request that you give clear and specific resolutions of the National Assembly:

“To issue in eurobonds and other securities in the international capital market 2.786 billion dollars. US and other securities for the implementation of new foreign borrowing, approved by the federal government of Nigeria in 2018 in relation to the Appropriations Act, for partial financing of the budget deficit of the budget of 2018, as well as for financing key infrastructure projects in 2018.

“And issue Eurobonds and other securities in the international capital market for refinancing in the amount of 82.54 million dollars. The United States, being the balance of five-year Eurobonds in the amount of $ 500 million. USA."

Nigeria takes loans to mitigate the effect of the huge deficit in the 2018 budget

Africa's largest economy is seeking funds to raise capital to finance the record budget of 2018 in the amount of 9.20 trillion. Doll. US ($ 29.8 billion. USA).

The country's privatization agency said it would also sell 10 state assets to meet with key projects in the budget.

Nigeria sells its state-owned companies to finance a record 2019 trillion budget N9.1 trillion

Yemi Osinbaggio, Vice President of Nigeria, during the signing ceremony for the sale of the federal government's shares in the amount of 12.4 billion shares in the Nigeria Security Service, Printing and Coining (NSPM) Plc to the Central Bank of Nigeria at the State House in Abuja. September 18, 2018.

(Twitter / Yemi Osinbajo)

The government expects N289 billion ($ 797 million) to be sold out of the sale.

Despite a warning By the International Monetary Fund (IMF) on debt levels in African countries, Nigeria stated that it has to take loans to get out of economic difficulties for its citizens.

Debt office also sure that Nigeria’s public debt is managed in accordance with regulations and international best practice, adding that there is no risk of default on any loan.

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