National Assembly okays $500m Eurobond to fund 2017 budget

Naira exchanges for N410/$ at parallel market
The National Assembly has approved the request of the Federal Government to raise additional $500 million Eurobond from the international capital market to support the 201 fiscal plan.

The Senate arrived at this decision yesterday after a long-drawn debate on the loan request.

Deputy Senate President Ike Ekweremadu, who presided over the plenary, commended lawmakers for putting aside their political differences to approve the request.

Deputy Majority Leader, Bala Ibn Na’Allah, who moved the motion for the loan request, urged his colleagues to quickly a consider and endorse the request because of its importance to the implementation of the 2017 budget.

Senate Minority Leader, Godswill Akpabio seconded the motion.

In a letter dated February 22, 2017, then Acting President Yemi Osinbajo had written to the Senate and the House of Representatives, seeking approval for the executive to float another $500m Eurobond.

The request came just weeks after the Federal Government floated a $1bn Eurobond.

Osinbajo said the government had taken advantage of the fact that the $1billion bond was over-subscribed and was seizing the opportunity of the favourable market conditions to issue the new $500m Eurobond.

The House of Representatives also approved the request yesterday.

The approval was contained in a report by the House Committee on Aids, Loans and Debt Management headed by Adeyinka Ajayi (APC-Osun) at the sitting of the committee yesterday.

The House after the consideration and adoption of the report at the Committee of the Supply mandated the Adeyinka Ajayi-led Committee to monitor the disbursement of the approved $500 million Eurobond as specified in the 2016 Appropriation Act, in the bid to ensure compliance.

The House Leader, Femi Gbajabiamila, speaking earlier said the Appropriation Act, 2016 provided for a deficit of N2, 204,742 billion and borrowing of N1, 818,675 billion adding that the domestic borrowing has been incurred, while the N635.877 billion external borrowing has been fully accessed.

Meanwhile, the local unit gained appreciated at the parallel market yesterday, from N430/$ on Tuesday, to N410/$, while it depreciated by 0.08% at the inter-bank market to close at N307.75/$.