Nigeria’s Buhari asks lawmakers to approve $2.79B Eurobond

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Nigerian President Muhammadu Buhari on Tuesday asked lawmakers to approve the issuance of a $2.79 billion Eurobond, in a letter read in the upper chamber of parliament.

The head of the Debt Management Office (DMO) in June said Nigeria planned to raise $2.8 billion of debt offshore as part of its 2018 budget.

Nigeria, which emerged from recession last year, approved a three-year plan in 2016 to borrow more from abroad so that 40 percent of its loans would come from offshore in an attempt to lower borrowing costs.

Buhari, in the letter, said he wanted the Eurobond to be issued in the international capital market for the “implementation of new external borrowing” that had already been approved in the 2018 budget.

The money was sought to help finance the budget deficit and to fund infrastructure projects.

Buhari, who will seek a second term in a presidential election to be held in February, signed a record 9.12 trillion naira budget for 2018 into law in June as part of an attempt to foster growth in one of Africa’s biggest economies.