By Taiye Odewale
Abuja
Senate yesterday approved the $500million Eurobond request President Muhammadu Buhari forwarded to it last week without subjecting it to any debate.
The Bond as stated in a letter of request forwarded to the Senate on March 15 by Vice President Yemi Osinbajo on behalf of President Buhari was to be accessed from the International Capital Market and used for funding of the 2016 budget deficit in line with borrowing plans already prepared for that purpose.
The letter read on the floor of the Senate last week by the Senate President, Bukola Saraki, stated: “The senate may wish to refer to item 229 and 244 of the 2016 Federal Government of Nigeria Appropriation Act which provided for a deficit of N2, 204.74 billion and new borrowings of N1, 818.68 billion, respectively.
“The Act also provided for domestic borrowing of N1, 182.80 billion and external borrowing N635.88 billion in line with item 245 and 246, respectively.
“The Senate may also wish to note that while the approved domestic borrowing has been fully incurred, the N635.88 billion on external borrowing has not been fully accessed.
“The external borrowing incurred today consists of 600 million dollars from the African Development Bank and one billion dollars Euro Bond for the International Capital Market (ICM) only.
“The Senate may wish to note that the proceeds of the Euro Bond are to be used as funding sources to finance the budget deficit, including capital expenditure projects as specified in the 2016 Appropriation Act.”
It was indicated in the letter that terms and conditions of the Euro Bond, would be determined at the point of issuance.
While raising the motion for its approval yesterday, the Deputy Senate Leader Bala Na’Allah (APC, Kebbi South) said in view of the urgency of the request and the lack of time it was necessary for the lawmakers to expressly grant the approval for the request which was concurred to, by the Senate when the Deputy Senate President, Ike Ekweremadu, who presided over the session, put the question for voice vote.
After the approval, an elated Na’ Allah remarked: “I thank my colleagues for this rare show of understanding and exhibition of cooperation for this government in its determination to touch the life of average Nigerians.”
