Nigeria’s President, Muhammadu Buhari is again sent a letter seeking the approval of for a fresh external borrowing of $5.513billion to the House of Representatives. The letter was read by Speaker of the House of Representatives, Femi Gbajabiamila, at Thursday plenary, said the funds were for 2020 budget deficit, financing of critical projects, and some states of the federation.
He said the President also presented a revised 2020 Appropriation Bill and 2020-2022 Medium Term Expenditure Framework and Fiscal Strategy Paper. The National Assembly had earlier approved a loan of N850bn for the Federal Government, while another of $22.79bn, which the Senate has already approved, is pending before the House.
Given the fall in crude oil price, which is Nigeria’s major source of revenue generation, financial experts are seriously worried at the level of government borrowing and the the country’s increasing debt burden.