Senate Approves Tinubu’s $2.2 Billion External Loan Request

The Nigerian Senate has granted approval for President Bola Tinubu to secure a $2.209 billion (N1.767 trillion) external loan, which will contribute to financing the N28.7 trillion 2024 budget as outlined in the Appropriation Act.

The approval came during Thursday’s plenary following the presentation of the Senate Committee on Local and Foreign Debts report by its Chairman, Aliyu Wamakko. The loan will be sourced through Eurobonds in international capital markets and will operate under the country’s financial laws.

In his Tuesday request to the Senate and House of Representatives, President Tinubu explained that the $2.2 billion borrowing was “provided as new external borrowing in the 2024 Appropriation Act required to finance the budget deficits of about 9.17 trillion.” The request was made in accordance with Sections 21 and 27 of the Debt Management Office Establishment Act of 2003 and had received prior approval from the Federal Executive Council.

After reading the president’s letter, Senate President Godswill Akpabio directed the Senate Committee on Local and Foreign Debts to expedite its review within 24 hours. Although the deadline elapsed on Wednesday, the committee presented its findings during Thursday’s plenary.

During the presentation, Senator Wamakko (APC, Sokoto North) emphasized that the external borrowing would strengthen Nigeria’s foreign reserves. He also noted that members of the National Assembly would work alongside the Federal Ministry of Finance to ensure proper utilization of the funds once secured.

Deputy Senate President Barau Jibrin, who presided over the plenary, expedited the approval process without opening the request for debate, stating that the president’s request was straightforward and in the interest of the country.