President Buhari Requests for NASS Resolution for N2.343trn New Capital Raising

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Wednesday, May 19, 2021 / 09:10 PM / by DMO / Header Image Credit: Naija247news


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His Excellency, President Muhammadu Buhari, has recently written a letter to the National Assembly (NASS) requesting for the approval, by resolution of N2.343 Trillion new external capital raising.

 

The proposed new capital raising, is the New External Borrowing provided for in the 2021 Appropriation Act.

 

It will be recalled that the President signed the 2021 Appropriation Bill which included New Domestic and New External Borrowing into law after the approval of the National Assembly.

 

Accordingly, the new capital raising has already been approved and is now being presented to NASS in order to fulfil the provisions of Sections 21 and 27 of the Debt Management Office (Establishment, Etc.) Act, 2003.

 

The proceeds are to be deployed to capital projects in various sectors of the economy including power, transport, agriculture and rural development, education, health and water resources that are included in the 2021 Appropriation Act.

 

Clarification on Mr. President's Request to the National Assembly for a Resolution for N2.343 trillion New Capital Raising 

On May 18, 2021, the Debt Management Office (DMO) issued a Press Release (which was also placed on its website), explaining the request by His Excellency, President Muhammadu Buhari, GCON to the National Assembly (NASS) for a Resolution to enable the implementation of the New External Capital Raising of N2.343 Trillion (approximately USD6.183 Billion at the Budget Exchange Rate of USD/N379) included in the 2021 Appropriation Act.

 

Whilst the Press Release explained the rationale behind the President's request and the utilization of the proceeds, some sections of the public appear to require further clarification.

 

The proposed New Capital Raising, is the New External Borrowing provided in the 2021 Appropriation Act to part finance the deficit in the Budget. In other words, the New Capital Raising has already been approved in the Budgetary Process by the Executive and Legislative arms of Government.

 

Mr. President's request to the NASS is to comply with the provisions of Sections 21 and 27 of the Debt Management Office (Establishment, Etc.) Act, 2003.

 

The proceeds of the New Capital Raising are to be deployed to capital Projects in various sectors of the economy including power, transport, agriculture and rural development, education, health and water resources that are specified in the 2021 Appropriation Act, thus, enabling the implementation of the Act and the achievements of its objectives.

 

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