The Federal Government is to borrow a sum of $5.513 billion from external sources to finance the revised 2020 appropriation and support state government meet their challenges occasioned by COVID-19.
In a letter to the House of Representatives, President Muhammadu Buhari sought the approval of the lawmakers to borrow the amount from the International Monetary Fund, the World Bank, African Development Bank, Islamic Development Bank, Export, Import Bank of Brazil and the African Export, Import Bank.The letter which was read at plenary on Thursday by the Speaker, Rep. Femi Gbajabiamila states that $3.4 billion of the money is to come from the International Monetary Fund, $1.5 billion from the Works Bank, $500 million dollars from the African Development Bank, while the Islamic Development Bank is to provide $113 million.
The President further noted that the assumptions in the 2020 budget are no longer attainable given the slump in oil prices and lower demand for crude oil caused by the COVID-19 pandemic.
He also presented a revised 2020 Appropriation Bill and 2020-2022 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) to the Senate.
President Buhari is asking the Senate to give an expedited passage of the revised 2020 budget and MTEF because of the urgency of the situation. The Senate has, however, suspended its rules and commenced the second reading of the revised budget, the MTEF, and the FSP.