Revised 2020 budget: Buhari seeks Senate approval for $5.513bn external loans

President Muhammadu Buhari has sought the approval of Senate for an external loan of 5.513 billion dollars to fund the revised 2020 Appropriation Act. Buhari’s request was contained in a letter addressed to President of Senate Ahmad Lawan and read at plenary on Thursday. Buhari in the letter said the loan which would be sourced from the multilateral organisations would be used to finance the revised 2020 budget and priority projects of the Federal Governments. He said the loan became necessary given required funding of the revised 2020 budget and moves to insulate the nation’s economy from the COVID-19 pandemic. He listed the multilateral organisations to source from to include International Monetary Fund(IMF) World Bank, African Development Bank and Islamic Development Bank.

A breakdown of the loan to be received from the organisations according to Buhari are :

IMF: 3.4billion dollars, World Bank 1.4billion dollars, Africa Development Bank 500million dollars, Islamic Development Bank 113 million dollars. The President added in the request that the loans being urgently sought for are targeted at critical areas of funding of the 2020 budget, execution of critical projects slated for 2020 fiscal year and projects to support the state governments. The senate also at plenary received documents on revised 2020-2022 Medium Term Expenditure Frame Framework (MTEF)and Fiscal Strategy Paper (FSP) and revised 2020 Appropriated Act. The 2020 revised Appropriation Act  received for senate consideration is now predicated on oil production of 1.93 million barrels and oil price benchmark price of 25 dollars per barrel.

While the total budget estimates stood at N10.509 trillion as against N10.59.4 earlier approved, which amounts to difference of N85billion. Senate also at plenary passed for first reading five bills.

The bills are Nigerian Railways Corporation Act repeal and reenactment Bill ,2020 by Sen.Buhari Abdulfatai (APC-Oyo), National Transport Commission Establishment Bill, 2020 by Sen. Buhari Abdulfatai (APC-Oyo North), Tertiary Education Trust Fund Act 2007 amendment Bill, 2020 by Sen. Bamidela Opeyemi (APC-Ekiti), among others. Senate also at plenary debated and passed for second reading the bill to amend the 2020 Appropriation Act,having receive the document and suspended its rule 70 to debate the revised document on 2020 revised appropriation bill. It also received the report on Federal Character and intergovernmental Affairs on confirmation of nomination of 38 persons for appointment as Chairman and members of Federal Character Commission.