The Senate has approved a $2.2 billion loan request submitted by President Bola Tinubu to address the budget deficit in the 2024 fiscal year.
The approval was granted during a session of the upper legislative chamber following the presentation of a report by Senator Aliyu Wamakko, Chair of the Committee on Local and Foreign Debt.
The loan, equivalent to approximately ₦1.7 trillion at an exchange rate of ₦800 to the dollar, will be allocated to finance the ₦9.1 trillion deficit outlined in the 2024 budget.
Senator Wamakko in his report, explained that the funds would be sourced through financial instruments such as Eurobonds and Sukuk. He emphasised that these instruments are expected to provide the necessary resources to bridge the fiscal gap.
President Tinubu formally submitted the loan request to the National Assembly earlier in the week, seeking legislative approval for the external borrowing plan proposed by the Federal Executive Council (FEC).
According to the FEC, the $2.2 billion borrowing is intended to "strengthen the country’s finances and support economic reforms." The plan includes raising approximately $1.7 billion through Eurobond offerings and $500 million via Sukuk financing.
Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, stated that the borrowing process would commence within the current fiscal year. He noted that the exact funding arrangements would be determined by prevailing market conditions and recommendations from transaction advisers.
Meanwhile, the federal government has outlined a total expenditure proposal of ₦47.9 trillion for the 2025 fiscal year, reflecting its commitment to economic reform and fiscal sustainability.
