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

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5 years ago

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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 Appoints Retired General, Famadewa As Special Adviser On Homeland Security

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18 hours ago

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May 11, 2026

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Major General Adeyinka Famadewa (Retired)
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President Bola Tinubu has appointed retired Major General Adeyinka Famadewa as Special Adviser on Homeland Security in a move aimed at strengthening Nigeria’s internal security and intelligence coordination.

The appointment was announced on Monday in a statement issued by Chris Ugwuegbulam, Head of Information and Public Relations at the Office of the Secretary to the Government of the Federation (OSGF).

According to the statement, the appointment reflects the administration’s commitment to improving security coordination, boosting intelligence-driven operations, and enhancing collaboration among security agencies to tackle emerging threats across the country.

The statement described Famadewa as a highly experienced military officer with more than three decades of service in national security, intelligence operations, counter-terrorism, and international security diplomacy.

It noted that during his time as Principal General Staff Officer to the National Security Adviser between 2015 and 2021, Famadewa played a key role in shaping Nigeria’s intelligence coordination system.

One of his major contributions was the establishment of the Intelligence Fusion Centre (IFC) at the Office of the National Security Adviser (ONSA). The centre brought together key security and intelligence agencies including the Defence Intelligence Agency (DIA), National Intelligence Agency (NIA), Department of State Services (DSS), the Nigeria Police Force, and the Armed Forces.

The platform was designed to improve intelligence sharing, national threat assessment, and strategic response coordination among security agencies.

After retiring from active military service, Famadewa continued contributing to national security discussions as a Senior Research Fellow at the Nigerian Army Resource Centre in Abuja.

He is also the author of the monograph titled “Policing and National Security in Nigeria,” which focuses on improving cooperation between civilian institutions and security agencies.

President Tinubu expressed confidence that Famadewa’s experience and strategic expertise would help strengthen the administration’s efforts to achieve a safer and more secure Nigeria.

The President also urged the retired general to use his professionalism and wealth of experience to support the government’s Renewed Hope Agenda and advance the country’s national security objectives.

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Defence and Security

Insecurity: CDS Orders Troops to Intensify Offensive Against Bandits in North-West

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3 weeks ago

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April 20, 2026

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CDS, Olufemi Oluyede
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The Chief of Defence Staff, Olufemi Oluyede, has directed troops under Operation FANSAN YAMMA to intensify operations against bandits and other criminal groups in Nigeria’s North-West region.

The directive was given during his operational visit to the Joint Task Force Headquarters in Gusau, Zamfara State, where he assessed troop readiness and ongoing efforts to restore peace in the area.

Addressing the soldiers, Oluyede praised their courage and sacrifices, urging them to remain disciplined and relentless. He stressed that the safety of citizens depends on their commitment, calling on them to pursue criminal elements until they are eliminated.

He also assured troops of continued support in welfare, training, and provision of necessary equipment to enhance their effectiveness in the field. The CDS highlighted the importance of improved air support and better coordination across operations.

During the visit, Oluyede paid a courtesy call to the Governor of Zamfara State, Dauda Lawal, commending his support for military operations and encouraging stronger collaboration, especially in intelligence sharing.

Governor Lawal, in his response, appreciated the efforts of the Armed Forces and reaffirmed his administration’s commitment to supporting security operations in the state.

The visit included operational briefings, troop interactions, and an assessment of deployments as part of ongoing efforts to tackle insecurity in the region.

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Defence and Security

Tinubu Approves ₦15bn Take-Off Grant for New Police Academy Campus in Ogun

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3 weeks ago

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April 20, 2026

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President Bola Ahmed Tinubu has approved the establishment of a new campus of the Nigeria Police Academy in Erinja, Yewa South Local Government Area of Ogun State.

The President also approved a ₦15 billion take-off grant for the institution. According to his Special Adviser on Information and Strategy, Bayo Onanuga, the move aligns with the provisions of the Nigeria Police Academy (Establishment) Act, 2021, which allows for expansion into multiple campuses nationwide.

The take-off fund will be sourced from the TetFund 2026 allocation and will support key infrastructure, academic facilities, student accommodation, and essential training equipment.

The decision followed a high-level meeting involving the Minister of Police Affairs, the Minister of Education, Tunji Alausa, officials of the Federal Ministry of Education, the Inspector-General of Police, and the Executive Secretary of the National Universities Commission.

The meeting considered factors such as student capacity, funding, academic standards, and the long-term needs of the Nigerian Police Force. The expansion is expected to enhance policing education, institutional governance, and national security.

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