By using this site, you agree to the Privacy Policy and Terms & Conditions.
Accept
Okay.ngOkay.ngOkay.ng
Font ResizerAa
  • News
    • Politics
  • Entertainment
  • Business & Economy
  • Sport
  • Tech
Reading: President Buhari Writes Senate Seeking Approval to Borrow $29.9bn
Share
Font ResizerAa
Okay.ngOkay.ng
  • News
  • Entertainment
  • Business & Economy
  • Sport
  • Tech
Search
  • News
    • Politics
  • Entertainment
  • Business & Economy
  • Sport
  • Tech
Follow US
  • About Okay.ng
  • Advertising on Okay.ng
  • Contact Okay.ng
  • Careers
  • Meet the Team behind Okay.ng
  • Ownership and Funding of Okay.ng
  • Editorial Principles at Okay.ng
© OKN MEDIA PUBLISHING 2022 - All rights reserved
News

President Buhari Writes Senate Seeking Approval to Borrow $29.9bn

Farouk Mohammed
By Farouk Mohammed
Published: October 25, 2016
Share
6 Min Read
SHARE

Buhari

Nigeria’s President on Tuesday forwarded a request to the National Assembly to approve external borrowing plan of $29.960 billion to execute key infrastructural projects across the country between 2016 and 2018.

Buhari-Aso-Rock-Office-7

Contents
BuhariNigeria’s President on Tuesday forwarded a request to the National Assembly to approve external borrowing plan of $29.960 billion to execute key infrastructural projects across the country between 2016 and 2018.The president also requested for virement of N180.8 billion in the 2016 budget for provision of needed votes for some critical sectors across the 36 states of the federation and the FCT.
The president also requested for virement of N180.8 billion in the 2016 budget for provision of needed votes for some critical sectors across the 36 states of the federation and the FCT.

Buhari made the requests in two separate letters to the President of the Senate, Dr Bukola Saraki, and Speaker of the House of Representatives, Mr Yakubu Dogara, which were read on the floor of both chambers.

The president, in the external borrowing plan, explained that targeted projects cuts across all sectors with special emphasis on infrastructure, agriculture, health, education, water supply, growth and employment generation.

Other sectors he said included poverty reduction through social safety net programmes and governance and financial management reforms, among others.

- Advertisement -

According to him, the cost of the projects and programmes under the borrowing (rolling) plan is $29.960 billion.

This is made up of proposed projects and programmes loan of $11.274 billion, Special National Infrastructure projects $10.686 billion, Euro bonds of $4.5 billion and Federal Government budget support of $3.5 billion.

He explained further that the loan was very necessary in view of the serious infrastructure deficit in the country.

He said the country had huge infrastructure deficit and enormous financial resources required to fill the gap in the face of dwindling resources.

- Advertisement -

“This is in addition to the inability of our annual budgetary provisions to bridge the deficit. It has become necessary to resort to prudent external borrowing to bridge the financing gap.

“This will largely be applied to key infrastructure projects namely power, railway and roads among others,” he added.

Buhari said the N180 billion would be moved from monies already appropriated for special intervention programmes both recurrent and capital for funding of critical recurrent and capital items.

He said the request arose due to shortfalls in provisions for personnel costs; inadequate provision ab initio for amnesty programme; continuing requirements to sustain the war against insurgency; and depreciation of the Naira.

The letter reads in part: “In the course of implementing the 2016 Appropriation Act, several MDAs have presented issues pertaining to salary shortfalls, the settlement of part of which has led to the depletion of the Public Service Wage Adjustment.

“This Vote, which had a provision of N33,597,400,000, now has a balance of N2, 758,296,000.

“The provision for NYSC in the 2016 budget is inadequate to cater for the number of corps members to be mobilised this year.

“In fact, an additional N8.5 billion is required to cover the backlog of 129,469 corps members who are due for call-up but would otherwise be left out till next year due to funding constraints.

“Similarly, the provision for meal subsidy for the Unity Colleges is inadequate for the number of students in the schools.

“Due to the devaluation of the Naira, the budgetary provisions for the foreign missions are no longer sufficient to cover all their costs.”

In another letter dated Oct. 24, the president also requested the National Assembly to approve the virement of funds appropriated for special intervention (recurrent) and special intervention (capital) to fund some critical recurrent and capital items.

According to him, the reasons for the request for virement, include shortfalls in provisions for personnel costs; inadequate provision ab initio for some items like the amnesty programme; continuing requirements to sustain the war against insurgency and depreciation of the naira.

“However, considering the fact that budgeted revenues are running behind target due to the renewed violence in the Niger Delta.

“Also there are no supplementary revenue sources, the most viable option for now is the virement of appropriated funds from heads or sub-heads that may not be fully utilised before the end of this fiscal year,” Buhari added.

An analysis of the proposed virement shows that Public Service Wage Adjustment (PSWA) will gulp N71,800 billion.

“Contingency N1.2 billion, margin for increase in cost N2 billion for cadet feeding – Police Academy, Wudil, Kano, N932.4 million; amnesty programme N35 billion; internal operations of the armed forces N5.205 billion.

“Operation Lafiya Dole N13.933 billion; NYSC N19.792 billion; foreign missions N14.667 billion, and augmentation of meal subsidy/direct teaching and laboratory cost of N900 million bringing the total to N166.630,886,954 billion.

“Statutory transfers to Public Complaints Commission is estimated to gulp N1.2 billion while the virement in respect of capital expenditure for the Nigerian Air Force is N12.708 billion.

“Capital Supplementation: Presidential Initiative for the North East (PINE) is N1.5 billion bringing the total to N14,208,367,476 billion.”

Lastly, the president requested that N300 million be vired from the budget of the Ministry of Power, Works and Housing to fund the construction of 132KVA sub-station of fallen transmission towers, replacement of glass insulators at Gwaram, Jigawa.

Stay Updated on the Go with Our Latest News—Join Our WhatsApp Channel Now!
TAGGED:buhariSenate
Share This Article
Facebook Whatsapp Whatsapp Telegram Email Copy Link Print
ByFarouk Mohammed
Publisher
Follow:
Farouk Mohammed is a Head Editor at Okay Nigeria (Okay.ng). He has been publishing for 10 years and focused more on Local/World News on Okay.ng
Previous Article Pogba Needs Time to Adapt at Manchester United – Henry
Next Article Army‎ Arrests 30 Suspected Boko Haram Collaborators

Connect with Okay on Social

FacebookLike
XFollow
InstagramFollow
TelegramFollow

Dollar/Naira Rates

Dollar to Naira Exchange Rate

Okay.ng Logo
Buy Rate ₦1,605.00
Sell Rate ₦1,620.00

Last updated: 4 days ago (June 3, 2025 2:33 pm)

Displayed rates are for informational purposes only and are subject to change.

USD/NGN Converter

- Advertisement -
- Advertisement -
Ad imageAd image
- Advertisement -
Ad imageAd image

Recent Posts

Pastor Adeboye
Pastor Adeboye Shares Divine Directive: Leaving RCCG Could Lead to Tragic Loss
News
Anglican Bishop of Lafia Calls on President Tinubu to Address Root Causes of Nigeria’s Insecurity and Economic Woes
News
Egbe Bobakeye Okunrin Akile Ijebu Refutes False Claims About Queen Elizabeth II’s 1956 Visit
News
NRC Managing Director Warns Against Railway Vandalism: “We Don’t Have Scraps, We Have National Assets”
News
Tragic Head-On Collision in Jigawa Claims Nine Lives, Dozens Injured
News
- Advertisement -
Ad imageAd image

You May Also Like

Sport

Victor Osimhen Returns to Nigeria as Al Hilal Transfer Hangs in Balance Ahead of FIFA Club World Cup

Oluwadara Akingbohungbe
Oluwadara Akingbohungbe
June 7, 2025
News

Tinubu Urged by PDP to Cut Fuel and Electricity Costs Amid Eid-el-Kabir Festivities

Oluwadara Akingbohungbe
Oluwadara Akingbohungbe
June 7, 2025
Mike Ejeagha
News

Mike Ejeagha, Nigerian Highlife Maestro, Dies at 95

Muhammad A. Aliyu
Muhammad A. Aliyu
June 7, 2025
Okay.ngOkay.ng
Follow US
© OKN MEDIA PUBLISHING 2025 - All rights reserved
  • About Okay.ng
  • Advertising on Okay.ng
  • Contact Okay.ng
  • Careers
  • Meet the Team behind Okay.ng
  • Ownership and Funding of Okay.ng
  • Editorial Principles at Okay.ng
adbanner
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?