The Nigeria President, Muhammadu Buhari has written the Senate requesting for authorisation to borrow $5.5bn for the purpose of refinancing maturing domestic debt obligations of the Federal Government of Nigeria & the funding of the 2017 capital expenditure budget.
In a letter read by the Senate President to members of the upper chamber of the National Assembly “The Senate is requested to kindly approve the following external borrowings: Issuance of international Capital Markets through Eurobonds or a combination of Eurobonds and Diaspora Bonds for the Financing of the Federal Government of Nigeria’s 2017 Appropriation Act & Capital Expenditure Projects in the Act. Issuance of Euro bond in the ICM and/or Loan syndication by the Banks in the sum of $3bn for maturing of domestic debt obligations of the Federal Government of Nigeria”
Nigeria currently has a 15.1 trillion naira external debt stock which places its credit rating by Moody’s at B1 stable even though Fitch has downgraded Nigeria to B-. At the Annual Meeting of the International Monetary fund in Washington last week, it warned that Nigeria should be careful with its acquisition and management of foreign debt, especially considering that should this proposal be approved by the regulator, the Country’s total debt stock will rise to 19.6 trillion naira