While Buhari extends vacation, Osinbajo seeks Reps’ approval to borrow $500m

While Buhari extends vacation, Osinbajo seeks Reps’ approval to borrow $500m

Professor Yemi Osinbajo, Nigeria's acting president, is seeking approval from the House of Representatives, to borrow $500million out of the $1billion Eurobound from the International Capital Market (ICM).

The Vice President said the money would be used to fund the 2016 Budget deficit.

While Buhari extends vacation, Osinbajo seeks Reps’ approval to borrow $500m

In a letter addressed to the Speaker Yakubu Dogara and read on the floor of the House on Wednesday, Osinbajo said: “The Rt. Honourable speaker may also wish to note that whilst the approved domestic borrowing has been fully incurred, the N635.877 billion external borrowing has not been fully accused.

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“The external borrowings incurred to date consist of USD 600 million from the African Development Bank and USD 1 billion Eurobond from the International Capital Market (ICM) only.

“Thus, based on the 2016 appropriation and applying the average exchange rate, there is headroom to access further international funds.

“Following the high over subscription of the recent USD 1 billion Eurobond issuance, we wish to take advantage of favourable market conditions to issuance of Eurobond debt instrument of USD 500 million to fund the implementation of the 2016 budget, which is still ongoing.

“The Rt. honourable speaker may wish to note in line with the requirement of securities issuances in the ICM, a specific resolution of the national assembly, as a firm confirmation of the approval of the legislature for the federal government of Nigeria to borrow the USD 500 million through the issuance of a Eurobond debt instrument in the ICC is required.”

Daily Post reports that Osinbajo also said the Debt Management Office (DMO) and the government’s appointed transaction parties, were working to ensure the best terms and conditions for the country.

“Accordingly, the Rt. honourable speaker is requested to kindly approve by resolution of the national assembly the issuance of USD 500 million Eurobond in the international capital market for the funding of the budget,” he said.

Meanwhile, the Federal Executive Council (FEC) presided over by Acting President Yemi Osinbajo has approved the construction of a 38 million US dollar link bridge between Nigeria and Cameroon.

The Minister of Power, Works and Housing, Mr Babatunde Fashola, told State House Correspondents on Wednesday in Abuja that FEC also approved the resuscitation and completion of the Kaduna Eastern bye pass highway.