President Muhammadu Buhari is requesting National Assembly authorisation to borrow additional $4 billion ($4,054,476,863) and €710 million from bilateral and multilateral organizations to cover the budget deficit in 2021.
The loan request is an update to the 2018-2020 borrowing plan, according to the president in a letter to the Senate.
He also requested that $125 million in grant components be approved by Congress.
His plea was contained in a letter read out before the start of session on Tuesday by Senate President Ahmad Lawan.
Mr Buhari further stated that the need to borrow more money is due to "growing needs" of some "important projects."
“I write on the foregoing issue and submit the attached addition to the proposed 2018-2020 external rolling borrowing plan for the Senate's review and approval before it becomes effective.
“The distinguished senate president may recall that in May 2021, you presented a proposal to the senate for approval of the 2018-2020 borrowing plan.
“However, in light of additional pressing needs and to ensure that all key projects approved by the FEC by June 2021 are included, I am submitting an update to the proposed borrowing plan.
Part of the letter stated, "The projects indicated in the external borrowing plan are to be financed through sovereign loans from the World Bank, EXIM Bank, and IFAD totaling $4,054,476,863 and €710 million, respectively, and grant components of $125 million."
When the loans are obtained, the president claims that they would stimulate the economy and create jobs.
His latest loan proposal comes just two months after the National Assembly approved his earlier request for $8.3 billion in loans and €490 million in loans as part of the initial borrowing plan for 2018-2020.
The lawmakers had stated that the monies were needed for initiatives related to the Nigerian Economic Sustainability Plan, which included infrastructure, health, agriculture and food security, energy, and COVID-19, among other things.
With the current currency rate of $1 to N550, the new loan of $4 billion will be worth almost N2.2 trillion.
The budget for 2021 already contains a deficit of N5.6 trillion.
