Buhari’s N2.343tn external loan request not new —DM0

The Debt Management Office (BMO) has defended President Muhammadu Buhari’s loan approval request to the National Assembly on Tuesday, noting that it was not new as reported.

According to a statement posted on its website, DMO clarified that President Buhari‘s request was only to demand resolution to the adoption of the new external capital raising contained in the Appropriation Act for 2021 from the legislative arms of government according to law.

The statement titled ‘clarification on Mr. President’s request to the national assembly for a resolution for N2.343 trillion new capital raising’ DMO emphasized that the Executive has already authorised New Capital Raising during the Budgetary Process last year.

Part of the statement reads, “On May 18, 2021, the Debt Management Office (DMO) issued a Press Release (which was also placed on its website), explaining the request by His Excellency, President Muhammadu Buhari, GCON to the National Assembly (NASS) for a Resolution to enable the implementation of the New External Capital Raising of N2.343 Trillion (approximately USD6.183 Billion at the Budget Exchange Rate of USD/N379) included in the 2021 Appropriation Act.

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“Whilst the Press Release explained the rationale behind the President’s request and the utilization of the proceeds, some sections of the public appear to require further clarification.

“The proposed New Capital Raising, is the New External Borrowing provided in the 2021 Appropriation Act to part finance the deficit in the Budget. In other words, the New Capital Raising has already been approved in the Budgetary Process by the Executive and Legislative arms of Government.

“Mr. President’s request to the NASS is to comply with the provisions of sections 21 and 27 of the Debt Management Office (Establishment, Etc.) Act, 2003.

“The proceeds of the New Capital Raising are to be deployed to capital projects in various sectors of the economy including power, transport, agriculture and rural development, education, health, and water resources that are specified in the 2021 Appropriation Act, thus, enabling the implementation of the Act and the achievements of its objective,” DMO concluded.

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