Tinubu Seeks Fresh $2.2bn Foreign Loan, Pushes for Quick Approval of 2025-2027 Fiscal Framework
President intensifies economic recovery efforts with dual financial proposals amid budget deficit concerns
President Bola Tinubu has intensified his administration’s economic recovery efforts by approaching the National Assembly with a request for a $2.2 billion external loan, aimed at addressing the substantial N9.7 trillion deficit in the 2024 budget. The loan request, presented through House Speaker Tajudeen Abbas during Tuesday’s plenary session, comes as part of a broader strategy to stabilize Nigeria’s fiscal position.
Alongside the loan request, the President has submitted the 2025-2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) for legislative consideration. This document outlines the government’s fiscal and budgetary priorities over the medium term, providing a blueprint for Nigeria’s financial management strategy.
In a move to strengthen social welfare programs, Tinubu has also proposed significant amendments to the National Social Investment Programme Establishment Bill. The proposed changes seek to institutionalize the social register as the primary tool for implementing federal welfare programs, potentially revolutionizing how social benefits reach Nigeria’s most vulnerable populations.
Legislative Proceedings Begin
The legislative machinery has sprung into action following the President’s submissions. Senate President Godswill Akpabio has directed the Committees on Finance, National Planning and Economic Affairs to conduct a thorough review of the MTEF/FSP document, which received unanimous support from senators during the initial presentation.
In his letter to the Senate President, Tinubu emphasized the urgency of the situation, noting that the MTEF/FSP had already secured approval from the Federal Executive Council during its November 10 meeting. The President stressed that the 2025 budget’s preparation hinges on the parameters and fiscal assumptions outlined in these documents.
Emphasizing the the time-sensitive nature of the approval process, “It is imperative to seek the National Assembly’s expeditious legislative action on this submission,” Tinubu stated in his letter.
The committees are now tasked with analyzing the framework and strategy paper, with expectations to report back to the senate in the coming weeks. Their findings will be important in shaping the final resolution on these critical financial proposals.
