Nairametrics| The Federal Government’s (FG) plan of borrowing its way out of the deficit budget is about complete as the Senate on Wednesday gave its nod of approval to the Presidential request to float another $500 million Eurobond. A letter seeking the lawmakers’ approval for the bond, submitted by the then Acting President, Yemi Osinbajo, explained that it was in line with the new borrowings allowed for by the 2016 Appropriation Act, Punch reports.
The Senate’s response was prompt as the Deputy Leader, Bala Na’Allah, emphasized on the urgency of the request, noting that it was necessary for the lawmakers to grant the approval immediately. The motion was subsequently seconded by Minority Leader, Senator Godswill Akpabio after which the lawmakers unanimously approved it.
It will be recalled that the 2016 Appropriation Act allowed for new borrowings of N1.8 trillion. The new borrowings were supposed to be funded by domestic borrowing of N1, 182.80 billion and external borrowing N635.88 billion.
While domestic borrowing has been fully incurred already, till date, only $600 million from the African Development Bank and $1 billion from the February Euro Bond have been incurred. This represents at the N305/$1 rate the budget is based on, 76.8% of the external borrowing. With the new bond to be floated, the FG would however have fully accessed both domestic and external borrowings allowed for in the 2016 Appropriation Act.