(Ecofin Agency) - The Nigerian House of Senate has granted President Muhammadu Buhari’s request to raise additional $500 million Eurobond from the international capital market to finance the $7 billion deficits in the 2017 budget. The approval was given after a closed-door session by the senate on Wednesday.

The Eurobond follows the oversubscription of a similar bond worth $1 bn approved earlier this year by the Senate, also to finance budget. Last month, the Vice President, Yemi Osinbajo, also wrote to the parliament to seek approval to issue a new $500 million Eurobond to plug the deficit.

Let’s recall that Nigeria is in talks to acquire at least a $1 billion loan from the World Bank and the African Development bank to fund the budget deficit. Buhari in this year’s budget outlined plans to spend $22.5 billion to get a recession-battered economy back up.

Also earlier this month, the Federal Government unveiled the much-awaited Economic Recovery and Growth Plan (ERGP) that will help it tackle its current economic crisis and achieve sustained diversification.

Anita Fatunji