President Bola Tinubu has requested the Senate’s approval for a new external borrowing plan amounting to $2.2 billion. This request was outlined in a letter addressed to Senate President Godswill Akpabio, which was read during the plenary session yesterday.
In the correspondence titled, “Request for the resolution of the National Assembly for the implementation of external borrowing of approximately $2.2 billion in the 2024 Appropriation Act,” Tinubu indicated that this request aligns with the stipulations of Sections 21(1) and 27(1) of the Debt Management Office (DMO) (Establishment) Act of 2003, as well as receiving the endorsement of the Federal Executive Council.
He stated, “I am writing to seek a resolution from the National Assembly to secure the amount of N1.7 trillion, which is the equivalent of $2.2 billion at the budgeted exchange rate of one dollar to N800. This borrowing is intended to partially cover the budget deficit of N9.179 trillion outlined in the 2024 appropriation act.”
A few months ago, the World Bank approved a $2.25 billion loan for Nigeria to stabilize its economy following recent reforms and to enhance support for the impoverished. In April 2024, Finance Minister Mr. Wale Edun announced that Nigeria was seeking up to $2.25 billion in loans from the World Bank, with expectations for board approval in June.
Recent updates from Abuja indicate that the Senate is likely to approve the president’s request today, November 20, 2024. Senate President Godswill Akpabio presented the request during the plenary session on Tuesday, November 19, 2024, and subsequently directed the Senate Committee on Local and Foreign Debts to review it and provide feedback within 24 hours. The proposed loan of approximately $2.2 billion, equivalent to N1.77 trillion, is included in the external borrowing plan for the 2024 fiscal year.
