President Muhammadu Buhari
… Request for loan $5.513 bn
Tordue Salem, Abuja
The Presidency on Thursday urged the House of Representatives to speedily pass the 2020-2022 Medium Term Expenditure Framework MTEF and Fiscal Strategy Paper FSP and the revised Appropriation Bill 2020 for the fiscal year.
This was contained in a formal letter with an official seal directed to the Speaker House of Representatives Hon. Femi Gbajabiamila by President Muhammadu Buhari himself and read by the speaker at plenary.
The President specifically said that the House should amend the revised MTEF/FSP 2020-2022 and Appropriation Act 2020 so as to accelerate its implementation.
According to him, ” it has become necessary to revise the 2020-2022 and amend the 2020 Appropriation Act in view of the decline in prices oil prices and the cut in Nigeria’s crude oil production quota occasioned by the Covid-19 Pandemic”.
He informed the lawmakers that the assumptions underlying the 2020 Appropriation Act are no longer sustainable and it is important to adjust expected revenues, considering the widespread disruptions in other economic activities as well as national trade and transportation due to the measures implemented across the world to contain the pandemic.
He further said that it is imperative to reallocate resources in the Appropriation Act to ensure effective implementation of the emergency measures and other actions necessary to mitigate the socio-economic effects of the Covid-19 pandemic.
Besides, the President has also requested for the approval of 5,513 billion dollars loan from four multilateral financial institutions across the globe under the external borrowing plan of the government to finance the budget.
The loan according to him,”It became necessary in view of the sharp decline in crude oil prices at the international market due to the Covid-19 pandemic from the $57 benchmark projected in the budget to $25 current price as well as a sharp cut in production quota of crude oil”.
The facility, he told to the House, is in line with the provisions of sections 21 of the Debt Management Office Act 2003 and 41 of the Fiscal Responsibility Act FRA Act 2007 and would be financed by the following institutions as follows: International Monetary Fund IMF $400 million, World Bank. $1.5 bn, African Development Bank $500 bn, and Islamic Development Bank $113 bn.