Home News 2020 Budget, Revised 2020-2022 MTEF: Buhari Seeks NASS Approval for $5.513bn External Loan:

2020 Budget, Revised 2020-2022 MTEF: Buhari Seeks NASS Approval for $5.513bn External Loan:

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By Our Reporter

Abuja (Precise Post) – President Muhammadu Buhari on Thursday presented the revised 2020-2022 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) and the 2020 budget for consideration and approval by the National Assembly.


The President also requested the National Assembly to consider and approve his request to borrow $5.513 billion from external sources to execute Federal Government’s priority projects and for projects to support State Governments.

Buhari’s letter of request for external borrowing was read by Senate President Ahmad Lawan on the floor during plenary.

In the letter for external borrowing, Buhari said the $5.513 billion external loan is to enable the Federal Government fund the 2020 revised budget, execute Federal Government’s priority projects and for projects to support State Governments in stimulating their economy which has been adversely affected by the COVID-19 pandemic.

The President said the loan to fund the 2020 revised budget is being expected from multilateral institutions like the International Monetary Fund (IMF) $3.4 billion, World Bank $1.5billion, African Development Bank (AfDB) $500million and the Islamic Development Bank (IDB) $113million.

For the Federal Government’s priority projects the lenders are the AfDB – $125million to strengthen healthcare system and improve response to COVID-19 and $23 million for financing smallholder farmers to mitigate food security impact of the COVID-19 Pandemic.

It is also to source $600million from the Islamic Development Bank to support Nigeria’s response to challenges posed by COVID-19 and $500 million from the African Export-Import Bank to provide critical Medical supplies to combat COVID-19.

The Federal Government also intends to borrow Euro 995million from the Export-Import Bank of Brazil to support Green imperative and enhance the mechanisation of agriculture and agro-processing in Nigeria.

Buhari said that the Federal Government is negotiating with the World Bank for between $500million – $750 million for COVID-19 Action Recovery and Economic Stimulus Program to support state-level efforts to protect livelihoods, ensure food security and stimulate economic activities.

He said that another $500 – $750 million is being negotiated with the World Bank for State Fiscal Transparency and Sustainability Program to provide fiscal support to the States.

Buhari noted that the Islamic Development Bank has indicated that only $113million of financing will be available to the Federal Government of Nigeria in the 2020 fiscal year to finance the government’s COVID-19 response, which will come from restructuring of previously approved but inactive facilities for Nigeria.

Also, Buhari’s letter titled: “Submission of the revised FGN 2020-2022 Medium Term Expenditure Framework & Fiscal Strategy Paper and revised Appropriation Bill 2020” reads in part:

“It is with pleasure that I submit the revised 2020-2022 Medium Term Expenditure Framework & Fiscal Strategy Paper (MTEF/FSP) and the revised Appropriation Bill 2020, for the kind consideration and approval of the Senate.

“It has become necessary to revise the 2020-2022 MTEF/FSP and amend the Appropriation Act 2020, in view of the sharp decline in crude oil prices and the cut in Nigeria’s crude oil production quota occasioned by the COVID-19 Pandemic. In effect, the assumptions underlying the 2020 Appropriation Act are no longer sustainable.

“It is also imperative to adjust expected revenues considering the widespread disruptions in other domestic economic activities, as well as international trade and transportation, due to the measures implemented across the world to curtail the spread if the COVID-19 Pandemic.

“Furthermore, it is necessary to reallocate resources in the Appropriation Act 2020, to ensure effective implementation of required emergency measures, and other actions necessary to mitigate the negative socioeconomic effects of the COVID-19 Pandemic.”

The Senate President referred the 2020-2022 revised MTEF/FSP and the loan request to the Senate Committee on Finance and Senate Committee on Foreign and Local Debts respectively for further legislative work and to report back to plenary on Tuesday next week.

The Senate also suspended its relevant rules and read the revised 2020 Appropriation Bill for second time.

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