Tinubu Seeks Senate Approval for N1.767tn Loan

President Bola Tinubu has formally requested the Senate's approval for a new external borrowing plan amounting to N1.767 trillion, equivalent to $2.2 billion.

This request is part of a broader strategy to address the substantial budget deficit of N9.7 trillion projected for 2024.

The proposed loan, based on an exchange rate of N800 to $1, was presented to the National Assembly and read by Speaker Tajudeen Abbass during a recent plenary session.

President Tinubu emphasized the necessity of this borrowing to "part-finance the budget deficit," highlighting the critical role it plays in sustaining government operations and social programs.

Accompanying this request, President Tinubu also submitted the Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) for 2025-2027, along with an amendment bill aimed at making the social register the primary tool for implementing federal social welfare initiatives.

This move shows the administration's commitment to enhancing transparency and efficiency in social investment programs.

The Federal Executive Council had already approved this $2.2 billion borrowing plan as part of the 2024 Appropriation Act financing program.

If sanctioned by the Senate, Nigeria's external debt could escalate to $45.1 billion by the end of 2024, reflecting the country's ongoing fiscal challenges.

The Central Bank of Nigeria recently reported that the government spent $3.58 billion on servicing foreign debt in the first nine months of 2024, marking a 39.77% increase from the previous year.