President Muhammadu Buhari has asked the Nigerian National Assembly to approve an external borrowing of $29.960 billion for the building of essential infrastructures between 2016 and 2018. The president was also said to have asked for virement of N180.8 billion in the 2016 budget to attend to some sectors of the economy, particularly agriculture, health, education , water supply, growth and employment generation. Buhari also said the money being sought would be channeled into the poverty reduction initiative through social safety net programmes and governance and financial management reforms, among others.
The loan component comprises: proposed projects and programmes loan, $11.274billion, Special National Infrastructure projects, $10.686billion; Euro bonds, $4.5 billion and Federal Government budget support of $3.5billion.
“This is in addition to the inability of our annual budgetary provisions to bridge the deficit.
“It has become necessary to resort to prudent external borrowing to bridge the financing gap.
“This will largely be applied to key infrastructure projects namely power, railway and roads among others”, President Buhari said in his letter to the parliament.