Covid-19: FG suspends $3.3bn Eurobond issuance

Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed said Federal government has put its plans to issue a $3.3 billion Eurobond on hold.

She, however, expressed optimism that the House of Representatives would pass the $22.89 billion loan being sought by President Muhammadu Buhari which was already passed by Senate.

Ahmed who spoke on the sidelines of the international conference on commodities exchange in Abuja on Monday said the decision was due to the pandemic Covid-19 currently ravaging the world.

According to her, even if the request to issue the Eurobond was approved by the National Assembly, the executive arm would delay issuance because of the unfavourable global economic environment.

She said, “we are in the process of doing that and I can tell you that we are not going out immediately because the market indication of external borrowing at this time.

“Even if we get approval, we will defer it and watch the market and go out only when the time is right.”

On the indefinite suspension of the $22.89bn loan request of the Federal Government by the House of Representatives, she expressed optimism that approval would be given by the lawmakers.

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“The parliament is still doing its work, one arm of the parliament has completed theirs and the other is still working and it is a process that is controlled by the parliament itself, so we are waiting,” she said.

On when the government would announce the adjustment made to the 2020 budget, she said that would be done once the process of consultation is completed.

She said, “as soon as we have approvals from the President and the Federal Economic Council and also when we round off our consultation with the parliament.”

She said the unfolding events of the past few months such as the coronavirus pandemic and the oil price war, have further reinforced the resolve of the government to diversify the national economy.

“It is a time to develop a non-oil attitude to anything that we do, it is a time for us to review what we have planned and to prioritise expenditure in favour of major capital expenditure that will have a greater impact that will create jobs and visibility and also enhances the ease of doing business in our country.

“Any expenditure that are not critical we must defer to do it at a later time when things become more normal.”

 

NIGERIAN TRIBUNE