Barring any unforeseen circumstances, the Nigerian Senate will approve President Bola Tinubu’s $2.2bn (about N1.77tn) loan request today.
The loan, which is part of the external borrowing plan outlined for implementing the N28.7tn 2024 budget, is expected to partially finance the N9.7tn budget deficit for the 2024 fiscal year.
According to a letter read during the Senate and House of Representatives plenary on Tuesday, President Tinubu explained that the loan is necessary to bridge the gap in the country’s finances.
The letter was received by the Senate President, Godswill Akpabio, who immediately tasked the Senate Committee on Local and Foreign Debts to examine the request and report back within 24 hours.
Akpabio stated that the Presidential request for $2.2bn, equivalent to N1.77tn, is already enshrined in the external borrowing plan for the 2024 fiscal year. He, therefore, directed the Senate Committee on Local and Foreign Loans to give the request expeditious consideration and report back within 24 hours.
In addition to the loan request, President Tinubu also submitted the Medium-Term Expenditure Framework and Fiscal Strategy Paper for 2025–2027 to both the Senate and the House of Representatives. The document outlines the government’s plan for the next three years, including a $75 oil price benchmark per barrel, daily oil production of 2.06 million barrels, an exchange rate of N1,400 to $1, and a targeted GDP growth rate of 6.4 per cent.
These figures form the basis for consideration and approval of the proposed N47.9tn 2025 budget.