BEVERLY HILLS, May 18, (THEWILL) – President Muhammadu Buhari has asked the Senate to approve a new external loan of N2,343,387,942,848.00, about $6.183billion, for the Federal Government to finance the 2021 budget deficit.
Senate President Ahmad Lawan read Buhari’s letter of request on the floor of the Senate at plenary.
Buhari said the proposed loan, which is the equivalent of N2.3 trillion, is to finance the 2021 budget deficit of N5.6 trillion.
According to the president, sourcing the loan will enable the Federal Government to fund critical infrastructural projects in transportation, health and education, among other sectors.
Meanwhile, Buhari’s request to borrow more money from external sources has generated reactions raised from Nigerians.
Wale Olusi, the head of research at United Capital Plc said increased loans by the Federal Government will affect the country’s debt profile. He said such actions will create more burdens on the Nigerian economy.
Meanwhile, Nigeria’s civic tech organisation, BudgIT, has revealed it discovered 316 duplicated projects valued at N39.5 billion in the 2021 budget of the Federal Government, which is financed with N13.6 trillion.
The budget tracker said such duplication created loopholes for corruption, stating that out of the 316 duplicated projects, the Ministry of Health accounted for the highest, 115 duplications.
It further stated that non-security agencies were discovered to have requested for security funds even though they don’t have the capacity to provide the security needs.
