- The Senate has approved President Tinubu’s $2.2 billion loan request
- The approval was given during the Senate’s plenary on Thursday
- President Tinubu presented the loan request to the National Assembly on Tuesday
The Nigerian Senate has approved President Bola Tinubu’s loan request of $2.2 billion to partially finance the N9.7 trillion budget deficits for the 2024 fiscal year.
The approval followed the presentation of a report by the Chairman of the Senate Committee on Local and Foreign Debts, Aliyu Wamakko, during plenary on Thursday, November 21.
Deputy Senate President Jibrin Barau, who presided over the day’s plenary session, commended the committee for its swift and thorough examination of the loan request.
President Tinubu’s request
President Tinubu presented a new external borrowing request to the Senate and House of Representatives in separate letters on Tuesday, November 19. He sought authorisation for $2.2 billion (N1.767 trillion) under the 2024 Appropriation Act, which he said would help his administration meet its fiscal obligations.
The loan is part of strategies to address the country’s growing fiscal deficit, as the government aims to balance its budget and stimulate economic growth in the face of rising expenditures and burgeoning loans.
In addition to the loan request, President Tinubu also submitted the 2025-2027 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
While reading the president’s letter at Tuesday’s plenary session, Senate President Godswil Akpabio said, “The presidential request for $2.2 billion, equivalent to N1.77 trillion, is already enshrined in the external borrowing plan for the 2024 fiscal year.”
Akpabio further directed the Senate Committee on Local and Foreign Debts to expedite its review of the request and present a report within 24 hours. Although the deadline elapsed on Wednesday, the committee submitted its findings during Thursday’s plenary, after which the Senate approved the loan.
FG plans to borrow N31 trillion as national debt stock climbs to N165 trillion
Meanwhile, TheRadar reported that the Federal Government was set to borrow an additional N31.24 trillion to fund expenditures within the next three years.
The new borrowing will increase Nigeria’s debt stock from N134.3 trillion as of June 2024 to N165.54 trillion by 2027.
