Buhari Plans to Borrow An Additional Loan of US$1.2 Billion from Brazil

President Muhammadu Buhari is in talks with Brazil to borrow another $1.2 billion loan to finance agricultural programmes stipulated in the 2021 budget.

The President has already forwarded the request to the National Assembly for approval.

This was disclosed by the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed while defending the ministry proposed budget before the House of Representatives Committee on Finance in Abuja on Tuesday.

According to the minister, the Federal Government plans to acquire 100,000 hectares of land in each state for food production and ensure the construction is done in a way that it provides access for farmers to move farm produce to markets and subsequently reduced post-harvest losses.

This further explains why the minister said the nation’s total debt will rise to over N32 trillion by December 31, 2020 and N38 trillion by December 31, 2021 given existing approvals and projections.

Ahmed said, “The total public debt stock comprising the external and home debts of the federal and state governments and the Federal Capital Territory stood at N31.01tn ($85.90bn) as of June 30, 2020.

“It is projected, based on existing approval, to rise to N32.51tn by December 31, 2020 and N38.68tn by December 31, 2021.”

Mr James Faleke, the Chairman of the committee, asked the minister to explain position of things on diversification agenda of the administration.

The minister said, “For borrowing to improve industry, we are before the parliament. I request for the approval for loan that we call the Green Imperative Programme which is for loan of $1.2bn from the Brazilian government.

“It is a programme that is addressing the whole of agricultural value chain from mechanisation, production, processing and selling. It is meant to lend to businessmen for tractors, plants at all levels.”