President Bola Tinubu has formally requested approval from both the Senate and the House of Representatives for an external borrowing of $2.209 billion (N1.767 trillion), as stipulated in the 2024 Appropriation Act.
The request is part of Nigeria’s strategy to address a significant portion of the N9.17 trillion fiscal deficit outlined in the 2024 budget.
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In his letter to the legislative bodies, President Tinubu emphasized that the borrowing plan was aligned with the budgetary financing strategy and was essential for the smooth implementation of the national budget.
The request, forwarded to the Senate on November 14, 2024, comes after the Federal Executive Council (FEC) approved the borrowing plan, which will be raised through Eurobonds or other external instruments in the international capital market.
“The $2.209 billion loan will help finance the 2024 budget deficit and is part of our broader fiscal strategy,” President Tinubu explained. “We seek the National Assembly’s swift approval to ensure timely execution of the plan.”
The request, addressed to Senate President Godswill Akpabio and House Speaker Tajudeen Abbas, outlined the terms and conditions for issuing the Eurobonds and specified that the Honourable Minister of Finance and the Debt Management Office (DMO) would oversee the process upon approval.
The letter referenced Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003, which govern such borrowing. President Tinubu further emphasized the urgency of passing the request to enable Nigeria to mobilize the necessary funds for the 2024 fiscal year.
In response, Senate President Akpabio referred the request to the Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamako, with instructions to report back within 24 hours.
