- Nigerian Senate is set to approve President Tinubu’s $2.2 billion loan request to address a fiscal deficit in the 2024 budget
- The loan is part of a broader strategy to tackle Nigeria’s budget deficit, which totals N9.7 trillion for the 2024 fiscal year
- President Tinubu also submitted the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for 2025-2027
The Nigerian Senate is expected to approve President Bola Tinubu’s $2.2 billion loan request on Wednesday, November 20, as part of the government’s strategy to address the N9.7 trillion deficit in the 2024 fiscal year budget.
The loan is a crucial component of the external borrowing plan tied to the N28.7 trillion budget proposal for the upcoming year.
President Tinubu formally submitted the loan request to the Senate and House of Representatives in separate letters read during the plenary sessions on Tuesday, November 19.
The funds will contribute to financing a portion of the budget deficit, which the government has outlined as a priority for the fiscal year 2024.
Senate President Godswill Akpabio promptly tasked the Senate Committee on Local and Foreign Debts to review the loan request and submit a report within 24 hours.
Akpabio emphasised the need for swift approval, stating, "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."
The Senate is expected to consider the request with urgency, paving the way for approval of the much-needed loan.
The loan is part of a broader strategy to address Nigeria’s growing fiscal deficit, as the government aims to balance its budget and stimulate economic growth in the face of rising expenditures.
In addition to the loan request, President Tinubu also submitted the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for the period 2025–2027.
The MTEF/FSP documents, which include key parameters for the country’s future economic planning, will be examined by the Senate Committee on Finance, National Planning, and Economic Affairs. A report on these documents is expected within one week.
The proposed framework includes a $75 oil price benchmark per barrel, a daily oil production target of 2.06 million barrels, and an exchange rate of N1,400 to $1.
The government is also targeting a GDP growth rate of 6.4 percent, which forms the foundation for the proposed N47.9 trillion budget for 2025.
Tinubu approves N75 billion loan scheme at 9% interest rate for MSMEs
Meanwhile, TheRadar earlier reported that the Tijubu-lef Federal Government approved a N75 billion loan scheme for Micro, Small and Medium Enterprises (MSMEs).
The loan, disbursed in partnership with BOI and others, guaranteed a nine per cent interest rate.
