The Senate on Thursday approved President Bola Ahmed Tinubu’s loan request of $2.209 billion, equivalent to N1.767 trillion, just 48 hours after receiving the proposal.
The President had on Tuesday sent separate letters to both chambers of the National Assembly seeking approval for the loan, which is part of the N9.7 trillion deficit in the N28.7 trillion 2024 budget.
Upon receiving the request, the Senate mandated its Committee on Local and Foreign Debts to expedite its review and report back within 24 hours. During plenary, the committee chairman, Senator Aliyu Wamakko (APC, Sokoto North), presented the report, recommending approval of the loan.
The report, titled “Implementation of New External Borrowing of N1,767,610,321,779.00 Equivalent to $2.209 Billion in the 2024 Appropriation Act through the Issuance of Eurobonds and Other Sources,” emphasized the critical nature of the loan for national growth and development.
According to Senator Wamakko, the loan is earmarked for ongoing projects and programs captured in the 2024 budget, which are essential for Nigeria’s economic growth.
“This loan will support the implementation of the Debt Management Strategy aimed at reducing borrowing costs, extending the maturity of the public debt stock, creating space in the domestic market for other borrowers, and bolstering Nigeria’s external reserves,” he explained.
The report further detailed that the loan could be sourced entirely or partly through the issuance of Eurobonds in the International Capital Market (ICM) to address the budget deficit.
Accordingly, the committee made the following recommendations, which the Senate approved: the new external borrowing of N1.767 trillion (equivalent to $2.209 billion at an exchange rate of $1/N800) as outlined in the 2024 Appropriation Act.
Raise the loan through one or more sources, including:Issuance of Eurobonds in the ICM, Issuance of debut sovereign Sukuk in the ICM, Bridge/syndicated loans, subject to favorable market conditions.
Utilize any exchange rate gains resulting from an increase in the official exchange rate (from $1/N800 to approximately $1/N1,640) exclusively for capital projects in 2024 to enhance infrastructure development and national stability.
The Senate unanimously adopted the recommendations without opposition.
Deputy Senate President Senator Jibrin Barau, who presided over the session, praised the Wamakko-led committee for its diligence and timely delivery.
