Categories: News

Buhari Seeks Fresh N819bn Loan For Fixing Infrastructures Destroyed By Flood

President Muhammadu Buhari is seeking a fresh N819.54bn loan which will be used to fix various infrastructures destroyed by floods across the country.

Buhari Seeks Fresh Loan

The president on Wednesday forwarded to the National Assembly for approval of the loan which is the supplementary budget for the 2022 fiscal year planned to finance through domestic borrowing.

According to a letter to Senate, Buhari said the N819.5bn supplementary budget would address various infrastructure that was destroyed by flood across the various states in the country a few months ago.

The supplementary budget as explained by Buhari in a letter read in plenary by the Senate President, Ahmad Lawan, is meant for the capital expenditure component of the 2022 budget with an attendant increase of deficit to N8.17tn.

The letter read, “The year 2022 has witnessed the worse flood incident in recent history which has caused massive destruction of farmlands at a point already closed to harvest season.

“This may compound the situation of food security and nutrition in the country. The flood has also devastated road infrastructure across the 36 states and the FCT (Federal Capital Territory) as well as bridges nationwide that are critical for the movement of goods and services.

“The water sector was equally affected by the flood and there is a need to complete some ongoing critical projects that have already achieved about 85 percentage completion. The nine critical projects proposed in the sector cut across water supply, dam projects, and irrigation projects nationwide.

“I have approved a supplementary budget of 2022 appropriation of N819.536bn, all of which are capital expenditures. The supplementary will be financed through additional domestic borrowings which will raise the budget deficit for 2022 to N8.17tn and deficit to GDP ratio to 4.43 per cent.”

Being a proposal coming 10 to the New Year, the President of the Senate hurriedly forwarded it to the Senate Committees on Appropriation, Finance, Works, Water Resources and Agriculture for expeditious consideration.

With the newly proposed N819.54bn domestic debt,  the Federal Government’s domestic borrowing is expected to hit N3.33tn in 2022.

KanyiDaily recalls that the Debt Management Office (DMO) had revealed that Nigeria’s total public debt stock under President Muhammadu Buhari increased from N41.60trillion to N42.84trillion within three months.

Tobias Sylvester

Tobias Sylvester is the news editor for Kanyi Daily News and is based in Lagos. Contact Tobias at editor@kanyidaily.com. Got a confidential tip? Submit it here

Recent Posts

VeryDarkMan Calls Out Prophet Fufeyin For Selling ‘Miracle Golden Spoon And Sugar’ [Video]

Nigerian activist Martins Vincent Otse, also known as VeryDarkMan has reacted to a video of…

4 hours ago

I’ll Soon Sleep With Tiwa Savage If She Doesn’t Calm Down – Portable Warns [Video]

Controversial Nigerian musician, Portable has issued a blunt warning to his senior colleague Tiwa Savage…

5 hours ago

“Best Decision I Ever Made” – Charles Okocha Say As He Announces Wedding Date [Video]

Nollywood actor Charles Okocha has announced his wedding date, following the release of his pre-wedding…

6 hours ago

Nigerian Army Declares Nine Wanted For Terrorism In North-East

The Defence Headquarters (DHQ) has issued a wanted notice for nine people linked to terrorism…

17 hours ago

Nigerian Army Confirms Emergence Of New Terrorist Group ‘Lukarawas’ In Northwest

The Defence Headquarters has confirmed the rise of a new terrorist group called ‘Lukarawas’ in…

17 hours ago

“Only Weak & Jealous Person Criticizes Family In Public” – Yul Edochie Slams Brother Linc

Nollywood actor, Yul Edochie has hit back at his elder brother, Linc Edochie, for discussing…

18 hours ago