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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

COAS SHUAIBU ARRIVES IN BORNO AS TINUBU ORDERS NATIONWIDE RESCUE OF ABDUCTEES

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The Chief of Army Staff (COAS), Lieutenant General Waidi Shuaibu, on Saturday arrived in Maiduguri, Borno State, following President Bola Tinubu’s directive to security agencies to rescue all abducted persons across the country.

Shuaibu arrived at about 11:00 a.m. at the headquarters of the North-East Joint Task Force, Operation Hadin Kai, at the Maimalari Cantonment in Maiduguri.

His visit comes amid renewed efforts by security agencies to intensify operations against terrorists and bandits and secure the release of victims held in captivity.

The Minister of Defence, Christopher Musa, disclosed on Thursday, October 15, that President Tinubu issued the directive during a security meeting with heads of security agencies at the Presidential Villa in Abuja.

According to Musa, the President directed security operatives to deploy all necessary resources to locate and rescue abducted persons, irrespective of where they are being held.

“The directive from the President is: all of us must go all out to fish out and rescue all those that have been abducted, kidnapped, wherever they are,” the minister said.

He added that the President had also ordered security agencies to ensure that no terrorist or bandit camp remained anywhere in the country.

“There shouldn’t be any camp of any terrorists or bandits anywhere in Nigeria,” Musa stated.

The Chief of Army Staff’s arrival in Maiduguri underscores the military’s ongoing efforts to strengthen counterterrorism operations in the North-East, a region that has faced years of insurgency by armed groups.

The renewed directive places further responsibility on security agencies to intensify intelligence-led operations, dismantle terrorist strongholds and secure the safe return of all abducted victims.

 

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Defence and Security

National Policing Bill 90% Ready for Transmission to NASS — Gbajabiamila

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The National Policing Bill is 90 per cent ready for transmission to the National Assembly, Chief of Staff to President Bola Tinubu, Femi Gbajabiamila, has said.

Gbajabiamila, who chairs the Presidential Working Group on Police Reform, disclosed this on Thursday after a steering committee meeting at the State House in Abuja.

He said the bill could be transmitted to the National Assembly within one to two weeks, following a final review to address outstanding issues raised by state governors.

“The National Policing Bill is more or less ready for transmission to the National Assembly,” he said, adding that the committee needed one more meeting to finalise the document.

Gbajabiamila described the proposed legislation as one of the most important bills of the Tinubu administration, noting that the working group had held several meetings since it began deliberations on August 3.

He also expressed confidence that the Sixth Constitution Alteration Bill, which seeks to establish state police, would receive support across the country.

According to him, there is a national consensus on the need for the constitutional amendments, and he sees no reason why any state should withdraw its support.

The meeting was attended by Kwara State Governor and Chairman of the Nigeria Governors’ Forum, AbdulRahman AbdulRazaq; Ogun State Governor, Dapo Abiodun; Kaduna State Governor, Uba Sani; and Inspector-General of Police, Tunji Disu, among other government officials and members of the working group.

The proposed National Policing Bill is part of ongoing efforts to reform Nigeria’s policing system, while the constitutional amendment on state police is expected to pave the way for states to establish their own police services.

 

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Defence and Security

20 Abducted Corps Members Regain Freedom in Imo After Days in Captivity

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**Rescue Operation Ends Ordeal as NYSC DG, Security Chiefs Visit Victims in Owerri**

Twenty prospective members of the National Youth Service Corps (NYSC), along with another abducted passenger, have regained their freedom after days in captivity following their abduction along the Owerri-Onitsha Road in Imo State.

The victims were rescued from a forest in Amakohia-Ubi, Owerri West Local Government Area of the state, in a coordinated operation involving security agencies.

Their release brings relief to families who had endured days of uncertainty and anxiety following the October 1 abduction.

From Journey to NYSC Camp to Kidnappers’ Den

The victims were travelling from Ibadan, Oyo State, to NYSC orientation camps in Abia and Akwa Ibom states when their journey was abruptly cut short.

The two buses conveying the prospective corps members came under attack around Umunoha in Mbaitoli Local Government Area of Imo State.

The attack sparked a major security operation as authorities moved to locate the abducted corps members and dismantle the kidnappers’ hideout.

For the victims and their families, however, the days that followed were marked by fear, uncertainty and desperate prayers for their safe return.

Reports that the abductors were demanding as much as ₦50 million for each victim further heightened concerns among the families.

Security Forces Close In

As the search intensified, the Imo State Police Command reportedly located the kidnappers’ camp through drone surveillance.

However, security operatives were unable to immediately move into the area after intelligence indicated that the route and the camp had allegedly been fortified with improvised explosive devices.

Additional operational assets, including bulldozers and armoured personnel carriers, were subsequently deployed as security forces worked to gain access to the location.

Police had earlier announced the rescue of 10 victims following the attack, while efforts continued to locate those still being held captive.

The latest operation has now secured the freedom of the remaining 20 prospective corps members and another abducted victim.

Victims Receive Medical Attention

Following their rescue, the victims were taken to the Department of State Services (DSS) Hospital in Owerri for medical attention and comprehensive medical checks.

The Director-General of the NYSC, Brigadier General Olakunle Oluseye Nafiu, visited the rescued victims at the DSS clinic, where he addressed them and assessed their condition.

He was accompanied by the Imo State Commissioner of Police, the Director of the DSS in the state and the Commander of the 34 Artillery Brigade.

The presence of the NYSC leadership and senior security officials underscored the seriousness with which authorities treated the incident and the wellbeing of the rescued corps members.

While the victims have now regained their freedom, details surrounding the operation remain closely guarded.

It is also unclear whether any suspects were arrested during the rescue operation or whether any ransom was paid to secure the victims’ release.

The police, however, said the operation to apprehend those behind the abduction remains ongoing.

According to the Force Public Relations Officer, Ani Iniedu, security agencies would continue coordinated operations to ensure that those responsible are brought to justice.

Uzodimma Commends Security Agencies

Reacting to the development, Imo State Governor, Hope Uzodimma, commended the security agencies for what he described as their quick and coordinated intervention.

The governor expressed particular satisfaction that the corps members were rescued unharmed, praising the collaboration and patriotism demonstrated by the security agencies involved.

Uzodimma also acknowledged the cooperation between the Oyo and Imo State Governments, saying their joint efforts contributed to the successful release of all 20 captives.

He explained that because the incident involved the safety of human lives, authorities deliberately avoided releasing sensitive information while the rescue operation was underway.

According to him, the discreet approach was necessary to protect the victims and ensure that security agencies could carry out their operations without compromising their mission.

The governor also praised the parents and relatives of the abducted corps members for their patience and resilience throughout the difficult period.

He urged Nigerians to continue to have faith in the Federal Government and security agencies as efforts continue to address the country’s security challenges.

A Moment of Relief

For the rescued corps members, their release marks the end of a frightening interruption to what was supposed to be the beginning of a new chapter in their lives.

What started as a routine journey to NYSC orientation camps became an ordeal that left families waiting anxiously for news of their loved ones.

Their eventual rescue offers a moment of relief, while also renewing questions about security along major highways and the safety of young Nigerians travelling to serve their country.

For now, the focus remains on the recovery of the rescued victims, while security agencies continue efforts to identify, arrest and prosecute those responsible for the abduction.

 

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