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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

Police Rescue 75 Kidnap Victims in Kaduna

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3 days ago

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August 22, 2026

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Nigerian Police
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The Kaduna State Police Command has rescued 75 persons abducted by bandits in Birnin Gwari Local Government Area of the state.

The victims, comprising men, women and children, were reportedly travelling in commercial buses when they were attacked and abducted at Folwaya Village, near Birnin Gwari, on Wednesday, August 19, 2026.

The Command’s spokesperson, Mansir Hassan, disclosed in a statement that the rescue operation followed timely information received from the Birnin Gwari branch of the National Union of Road Transport Workers (NURTW).

According to him, the armed kidnappers, who were reportedly carrying AK-47 rifles and other sophisticated weapons, took the victims into a forest and concealed them inside a cave in a mountainous area.

Hassan said operatives from the Birnin Gwari Area Command were immediately deployed to the location following the report.

He explained that the abductors fled into the forest after sighting the heavily armed security operatives, abandoning the captives, who were subsequently rescued unharmed.

The Commissioner of Police in Kaduna State, Rabiu Muhammad, commended the NURTW for providing the timely intelligence that facilitated the operation.

He also praised the Birnin Gwari Area Commander and his personnel for their swift and professional response.

The Commissioner, however, urged residents to remain vigilant and cooperate with security agencies, warning against taking the law into their own hands, as such actions could endanger innocent lives.

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Defence and Security

Troops rescue 16 kidnapped victims in Dekina LG of Kogi State

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2 weeks ago

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August 10, 2026

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Troops have rescued 16 kidnapped persons after engaging suspected bandits in Dekina Local Government Area of Kogi State.

The victims comprised six males, six females and four children, according to an operational report made available to the News Agency of Nigeria (NAN) on Monday.

The report said the victims were abducted on Saturday, Aug. 9 along Ojuwo-Ajengo-Memarebo and Ojiwo-Itobe roads in Ofu Local Government Area of the state.

It said the operation followed intelligence that the victims were sighted around Adumu community in Dekina.

According to the report, the search-and-rescue operation involves troops of 21 Battalion and Nigerian Navy Ship (NNS) Lugard, the police, vigilantes and Hybrid Forces.

“The security forces eventually made contact with the suspected kidnappers and engaged them, forcing the criminals to abandon their victims and flee.

“However, one member of the Hybrid Forces was killed during the encounter, while one police personnel sustained injuries.

“The rescued victims were subsequently handed over to the police in Ajaokuta for further action,” it said.

The military said the operation highlights the continued collaboration among the military, police and local security groups in tackling kidnapping and rescuing victims in Kogi

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Defence and Security

Kano Multi Agency Task Force Arrest 28 Illicit Drug Suspects

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2 weeks ago

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August 9, 2026

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The Kano State Multi-Agency Task Force on Drug Abuse and Illicit Trafficking has arrested 28 suspects and recovered assorted illicit substances in Rimin Gado and Doka communities of the State.

This is contained in a statement  by the Chairman of the Task Force, Mr Muhuyi Malawi and issued by the Secretary, Mr Ibrahim Garba-Muhammad on Sunday in Kano.

Magaji, who led the operation, said it was aimed to tackle drug-related criminality and protect communities from the effects of drug abuse and illicit trafficking.

“On Aug. 7, the task force raided five drug joints in Rimin Gado and Doka in Tofa Local Government Area of the state.

The targeted operation was aimed to demonstrate the task force’s impartial enforcement mandate and to send a clear message that no one is above the law.

“We are treating every community equally and enforcing the law without bias.

“Our guiding principle is Kano First and we are determined to ensure a peaceful, prosperous and drug-free state inline with the vision of Gov. Abba Kabir-Yusuf,” he said.

Magaji said the task force recovered various assorted illicit substances during the raids.

He said  that he commenced the operations from his hometown Rimin Gado saying it was deliberate and symbolic.

“Sanitising my own community is the first step to a wider campaign,” he added.

He said that the campaign would be extended beyond Kano Metropolis to all  44 Local Government Areas of the state.

The chairman noted that the operation combined kinetic interventions to disrupt criminal activities with coordinated follow-up.

He said the task force would also adopt a balanced approach that would combine enforcement with prevention and recovery.

“While kinetic measures continue to dismantle illicit drug networks, non-kinetic efforts are being intensified through engagement with community leaders, regulatory bodies, health services and educational partners to raises awareness.

“We’ll also strengthen supply‑chain controls and expand rehabilitative support to those affected by substance use” Magaji said.

He stressed that lawful and legitimate businesses were not the target of the operations.

“Our aim is to protect honest traders and create an environment in which businesses and communities can thrive free from the effects of drug trafficking and abuse” he said.

Magaji said investigations were ongoing and suspects found culpable would be prosecuted in accordance with the law.

He urged members of the public to support the ongoing operations by reporting suspicious activities and provide relevant information on drug trafficking and abuse.

The Chairman reaffirmed the task force’s commitment to sustain its operations, uphold professional standards and safeguard the health and security of residents across the state.

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