Nigeria in for fresh N1.77trn loan

News Update

President Bola Tinubu has written to both the Senate and the House of Representatives, seeking approval of a new external borrowing of $2.209 billion (₦1.767 trillion), as provided for in the 2024 Appropriation Act.

According to the President, the request was part of Nigeria’s budgetary financing plan that is aimed at addressing a portion of the ₦9.17 trillion fiscal deficit in the 2024 budget.

President Tinubu has also forwarded to the Senate the 2025–2027 Mid-Term Expenditure Frame Work and Fiscal Strategy Paper (FSP), MTEF/FSP 2025–2027 approved by FEC on November 10, 2024, to parliament.

The MTEF/FSP request, which seeks expeditious passage, was referred to the Senator Sani Musa, APC, Niger East-led Senate Committees on Finance and National and Economic Planning to report back as soon as practicable.

The President’s letter, addressed to the President of the Senate, Senator Godswill Akpabio, and the Speaker, House of Representatives, Tajudeen Abbas, during plenary, highlighted that the request was in line with the provisions of Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003. The borrowing plan had already been approved by the Federal Executive Council (FEC).

The letter also provided detailed terms and conditions for the issuance of Eurobonds in the international capital market to raise the required sum.

President Tinubu authorised the Honourable Minister of Finance and Coordinating Minister of the Economy, alongside the DMO, to take all necessary steps to execute the plan upon National Assembly approval.

President Tinubu explained that the purpose of borrowing would be to finance the 2024 budget deficit as part of Nigeria’s broader fiscal strategy, adding that the amount of $2.209 billion (N1.767 trillion) will be raised through Eurobonds or other external borrowing instruments.

It also indicated Terms and Conditions are detailed in an attached summary to guide the Senate’s review.

The President appealed for swift legislative action, emphasising the importance of timely resolution to implement the borrowing plan.

Akpabio referred the matter to the Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamako, APC, Sokoto, with instructions to report back within 24 hours.

The National Assembly’s resolution is critical to mobilising the funds and ensuring smooth implementation of the 2024 budget.