Source: Africa Publicity
President Bola Tinubu has asked Nigeria’s national assembly to approve external loans totalling $6 billion.
The request was contained in two separate letters addressed to Godswill Akpabio, senate president, and read during plenary on Tuesday.
In the first letter, Tinubu sought approval for a structured total return swap (TRS) external financing programme of up to $5 billion from First Abu Dhabi Bank of the United Arab Emirates.
Tinubu said the facility would be disbursed in tranches to support federal funding needs and fiscal liquidity management.
“The purpose of this letter is to request for the approval and resolution of the national assembly pursuant to the provisions of section 21(1) and 27(1) of the debt management office establishment act 2003 to establish a structured total return swap (TRS) derivative external financing programme from First Abu Dhabi Bank of the United Arab Emirates of up to $5 billion which will be made available to the Federal Republic of Nigeria in tranches,” the letter read.
The president said the proceeds would be used for budget implementation, development of priority infrastructure projects, and repayment of relatively expensive domestic and external debts.
He added that the facility would also help the federal government meet urgent financial obligations when necessary.
Tinubu said the proposed borrowing would increase the country’s public debt stock.
