Part of the letter reads: “The Senate is requested to kindly approve the following external borrowings: issuance of $2.5 billion in international capital market (ICM) through Eurobonds, or a combination of Eurobonds and Diaspora bonds for the financing of the Federal Government of Nigeria 2017 Appropriation Act and Capital Expenditure Projects in the Act.
Adeosun had, while giving a report on the level of the implementation of the 2017 budget before the Joint Senate Committees on Appropriation and Finance last week, claimed that the Federal Government could not fund capital projects because the National Assembly was yet to approve borrowing plan requests from the president.
The presidency disclosed that the loan being sought was part of the 2016-2018 External Borrowing Plan of the Federal Government and was meant to finance capital projects in the 2017 budget and refinance maturing domestic debts.
The development came a week after the upper legislative chamber countered the Minister of Finance, Kemi Adeosun, over claims that the National Assembly was yet to approve President Buhari’s borrowing plans needed to fund capital projects in the 2017 budget.
“With respect to the terms and conditions of the proposed external borrowings, the Senate may wish to note that being market-based transactions, the terms and conditions of the borrowings can only be determined at the point of issuance of finalisation based on prevailing market conditions in the lCM,” the president said in his letter dated October 4, 2017 and addressed to Bukola Saraki, Senate President.
He explained that the Anchor Borrowers Programme, launched by the president in 2015, had benefitted up to 200,000 small-scale farmers and attracted investments of up to N43.92 billion.
“The Presidential Fertiliser Initiative has resuscitated 11 blending plants with a capacity of 2.1 million metric tons with the product being sold to farmers at N5, 500 without subsidy and far less than prevailing market prices,” he said.