The Nigerian Senate has approved a $2.209 billion loan in the amount of N1.767 trillion on Thursday, two days after President Bola Tinubu requested it.
On Tuesday, in separate letters to both houses of the National Assembly, President Tinubu asked clearance for a N1.767 trillion loan to partially pay the N9.7 trillion shortfall in the N28.7 trillion 2024 budget.
Recall that following receipt of the request, the Senate directed its committee on local and foreign debts to act on it immediately and report back within 24 hours.
Senator Aliyu Wammako (APC Sokoto North), the committee’s chairman, delivered findings on the presidential request for approval at plenary.
Senator Wammako stated in 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,” that the presidential request was critical for approval.
According to him, the proposed loan is intended for the completion of ongoing projects outlined in the 2024 Appropriation Act that are vital to growth and development.
He said:
“It will contribute to the implementation of the Debt Management Strategy which seeks to reduce the cost of borrowing, lengthen the maturity of the public debt stock, free – up space in the domestic market for other borrowers and help increase Nigeria’s External Reserves.”
He also stated that Nigeria might raise all or a portion of its $2.21 billion New External Borrowing through the issuing of Eurobonds in the International Capital Market (ICM).
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cc: Daily Post Ng
