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Buhari wants N’Assembly’s nod to raise N2.3bn to finance 2021 budget deficit

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The Senate on Tuesday received a request from President Muhammadu Buhari to raise the sum of N2,343,387,942,848 from multilateral and bilateral lenders, as well as the International Capital Market (ICM) through the issuance of Eurobonds.

The amount which is equivalent to USD$6,183,081,643.40 at the Budget Exchange Rate of USD$1/N379, is captured as New External Borrowing in the 2021 Appropriation Act (Item No.330), and meant to part-finance this year’s Budget Deficit of N5.602 trillion.

The request was contained in a letter addressed to the Senate President, Ahmad Lawan, and read during plenary.

According to the President, the request was made in line with the provisions of Sections 21(1) and 27(1) of the Debt Management Office (Establishment) Act, 2003.

He disclosed that Nigeria may be able to raise USD$3 billion or more, in a combination of tenors between 5 – 30 years.

Buhari explained that the Federal Government’s decision to raise the sum from the International Capital Market was due to the recent monetary policy stance that provides for very low interest rates and ease of moderating debt service cost.

He further disclosed that the proceeds of the USD6.183 billion (N2.343 trillion New External Borrowing in the 2021 Appropriation Act) would be used to fund specific Capital Projects in the Budget.

According to him, such projects are captured in priority sectors of the economy, namely: Power, Transportation, Agriculture and Rural Development, Education, Health, Provision of Counterpart Funding for Multilateral and Bilateral projects, Defence and Water Resources.

President Buhari’s letter, “Request For the Resolution of the National Assembly For: The Implementation of the New External Borrowing of N2.343 trillion (about USD6.183 Billion) In the 2022 Appropriation Act”, reads in part:

“The purpose of this Letter is to request for a Resolution of the National Assembly (NASS) to raise the sum of N2,343,387,942,848.00 (about USD 6,183,081,643.4O at the Budget Exchange Rate of USD1.00/N379) provided as New External Borrowing in the 2021 Appropriation Act (Item No. 330) to part-finance the Budget Deficit of N5.602 trillion.

“This request is in line with the provisions of Sections 21(1) and 27(1) of the Debt Management Office (Establishment, Etc.) Act, 2003 (DMO Act). Section 21(1) of the DMO states that “no external loan shall be approved or obtained by the Minister unless its terms and conditions shall have been laid before the National Assembly and approved by its Resolution”; while Section 27(1) states that the National Assembly may by a resolution approve, from time to time, standard terms and conditions for the negotiation and acceptance of external loans and issuance of guarantees”.

Implementation of the New External Borrowing in the 2021 Appropriation Act

“The President of the Senate may wish to recall that the 2021 Appropriation Act provides for N4,686,775,885,696.00 as New Borrowings(Item No. 328) to part-finance the 2021 Fiscal Deficit, of Which 50% or N2,343,387,942,848.00 (about USD 6,183,081,643.40 at the Budget Exchange Rate of USD1.00/N379) is specified as New External Borrowing.

“The President of the Senate may also wish to note that the allocation of #2.343 trillion to New External Borrowing in the 2021 Appropriation Act is consistent with the Nigeria’s Debt Management Strategy, which seeks amongst other objectives, to moderate

debt service costs by accessing relatively cheaper external funds, and to free-up space in the  domestic market for other borrowers.

Funding Plan

“I wish to bring to the attention of the President of the Senate that the plan is to raise the sum of USD 6.183 billion from a combination of sources; namely: multilateral and bilateral lenders, as well as from the International Capital Market (ICM) through the issuance of Eurobonds.

“From recent bends in the ICM, it is now possible for Nigeria to raise funds in the ICM and this explains why we are proposing that the New External Borrowing in the 2021 Appropriation Act, should include issuing Eurobonds in the ICM.

“We estimate that Nigeria may be able to raise USD 3 billion or more, but not more than USD 6.183 billion (the amount provided in the 2021 Appropriation Act) in a combination of tenors between 5 30 years; the outcome would, however, be determined when Nigeria approaches the market.

“The President of the Senate may further wish to note that not only is the ICM now open to issuers like Nigeria and Interest Rate lower than the levels in 2020, given the recent monetary policy stance, as well as, rising levels of inflation, the level of liquidity in the domestic market has decreased while. domestic Interest Rates are beginning to rise.

“Therefore, accessing the ICM will be relatively cheaper thereby moderating debt service cost, and it will also contribute to the level of External Reserves.”

Utilisation of Proceeds of New External Borrowing

“The proceeds of the USD6.183 billion N2.343 trillion New External Borrowing in the 2021 Appropriation Act) will be used  to found specific Capital Projects in the Budget.

“This includes projects from priority sections of the economy, namely: Power, Transportation, Agriculture and Rural Development, Education, Health, Provision of Counterpart Funding for Multilateral and Bilateral projects, Defence and Water Resources.”

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Defence and Security

TINUBU SWEARS IN GEN. CHRISTOPHER MUSA AS DEFENCE MINISTER

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President Bola Ahmed Tinubu, New Minister of Defence, General Christopher Musa and others dignitaries at the Oath taking ceremony in Abuja
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President Asiwaju Bola Ahmed Tinubu on Thursday swore in retired General Christopher Gwabin Musa as Nigeria’s Minister of Defence at the Presidential Villa, Abuja.

Musa’s appointment follows the resignation of former Defence Minister Mohammed Badaru Abubakar on December 1. His nomination was sent to the Senate on Tuesday and swiftly confirmed.

Born in Sokoto in 1967, Musa was commissioned into the Nigerian Army in 1991. He served as Chief of Defence Staff from 2023 until his retirement in October 2025, during which he promoted stronger cooperation among the armed forces.

With his swearing-in, Musa is expected to immediately take charge as the Tinubu administration intensifies security reforms and seeks to consolidate recent gains toward lasting peace nationwide.

Dignitaries at the ceremony included Senate President Godswill Akpabio, Senate Leader Opeyemi Bamidele, Information Minister Mohammed Idris, National Security Adviser Nuhu Ribadu, and senior military chiefs. Also present were Musa’s wife, Lilian Oghogho Musa; Bishop Matthew Hassan Kukah; and retired Justice Kumai Bayang Akaahs.

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Defence and Security

Senate Confirms Former Defence Chief Christopher Musa as Minister

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General Christopher Musa Rtd
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The Senate has confirmed General Christopher Musa (rtd), the immediate past Chief of Defence Staff, as Nigeria’s new Minister of Defence.

Musa’s nomination was approved on Wednesday after a screening session in which senators examined his military credentials and asked questions on national security challenges.

Addressing the lawmakers, Musa pledged commitment to diligent service and emphasised collaboration in tackling insecurity.

“The challenges we are facing are Nigerian challenges, not just for the armed forces or security agencies,” he said. “We will win if we work together as a team.”

He highlighted gaps in security operations and called for a unified national database to support intelligence gathering. Musa also urged stronger roles for local governments and the judicial system.

Rejecting ransom payments to kidnappers and terrorists, he warned that negotiation only emboldens criminals. “They use the money to buy more arms,” he noted.

Responding to claims of religious targeting in violence across the country, Musa said terrorism affects all citizens. “We must stop the killings. Nigerians should not be killed. We must unite,” he stated.

Senate President Godswill Akpabio praised Musa’s performance during the screening, describing him as the most thorough nominee since 1999. He encouraged the new minister to immediately visit defence industry facilities.

Musa’s nomination was subsequently approved through a unanimous voice vote.

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Defence and Security

Senate Backs Death Penalty for Kidnapping, Moves to Redefine Crime as Terrorism

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Senate in Session
Senate in Session
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In a decisive move to stem rising insecurity, the Senate has approved key amendments to the 2022 Terrorism (Prevention and Prohibition) Act, prescribing the death penalty for kidnappers and anyone who aids kidnapping operations.

During Wednesday’s plenary, senators across political lines overwhelmingly supported the bill sponsored by the Leader of the Senate, Senator Opeyemi Bamidele. The amendment seeks to classify kidnapping, hostage-taking, and related offences as acts of terrorism, granting law enforcement broader powers to dismantle criminal networks.

The bill has now been referred to the Committees on Judiciary, Human Rights and Legal Matters, National Security and Intelligence, and Interior for further scrutiny, with instructions to report back within two weeks.

Presenting the proposal, Bamidele said kidnapping had evolved from sporadic activity into organised violence affecting all regions of the country. He argued that the severity and scale of the crime now bear the hallmarks of terrorism, warranting the strongest punishment.

> “Kidnapping has instilled fear in communities, disrupted economic activities, ruined families, and claimed countless innocent lives,” he declared. “Our legal framework must reflect the magnitude of this threat.”

The amendment prescribes capital punishment not only for perpetrators but also for financiers, informants, logistics suppliers, harbourers, and anyone who knowingly supports kidnapping operations. Attempt, conspiracy, or incitement would attract the same penalty.

The Senate leader explained that reclassification under terrorism laws would enable intelligence-led operations, asset tracing, inter-agency cooperation, and disruption of funding channels.

Backing the proposal, Senator Adams Oshiomhole dismissed existing deradicalisation programmes as ineffective, arguing that some offenders return to crime after release.

> “Even Scriptures acknowledge that those who kill cannot be allowed to continue living,” Oshiomhole said. “If convicted for terrorism, the penalty should be death.”

Senator Orji Uzor Kalu lamented the suffering inflicted on Nigerians, citing cases of widows, traumatised families and victims of sexual assault.

> “Everyone involved in this criminal enterprise must face consequences,” he maintained.

Minority Leader Senator Abba Moro described kidnapping as a business venture for criminals and endorsed the bill as a necessary measure to deter offenders.

Also speaking, Senator Victor Umeh condemned the killing of victims after ransom payment and called for sanctions against facilitators, including complicit financial institutions.

The Senate President, Godswill Akpabio, welcomed the bipartisan support and mandated the lead committee to expedite consultations and present recommendations at a public hearing.

The proposed amendment marks one of the strongest legislative responses to Nigeria’s worsening kidnapping crisis, signalling a toughened stance on national security and criminal justice.

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