Senate Approves Tinubu’s Fresh $2.2bn Loan

Senate Approves Tinubu’s Fresh $2.2bn Loan

President Bola Ahmed Tinubu’s request for a $2.2 billion loan has been approved by the Senate, on Thursday.

This fresh loan is at financing the country’s 2024 budget deficit, estimated at ₦9.17 trillion.

The loan request was part of Tinubu’s letter to the Senate, which also included the Medium-term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP) for consideration and approval.

The decision was sequel to the consideration and adoption of a report of the committee on local and foreign debts, chaired by Senator Aliyu Wamakko (Sokoto North).

With the approval, Nigeria’s total debt has now hit an all-time high to the tune of N136 trillion.

Tinubu had written to the National Assembly requesting the Senate and House of Representatives to approve a fresh $2.2 billion as external borrowing plan in the 2024 Appropriation Act.

The President’s request was contained in a letter read by the Speaker of the House of Representatives, Tajudeen Abbas, and Senate President Godswill Akpabio, during separate plenaries on Tuesday.

Tinubu said the loan if approved would be used to part-finance the budget deficit of N9.7trillion for the 2024 budget.

The President’s request was transmitted to the Wamakko led committee for further legislative action. The committee was directed to report back to the committee of the whole as soon as possible.

Recall that the Federal Executive Council (FEC) had earlier given its nod for the $2.2 billion external borrowing plan to “strengthen the country’s finances and support economic reforms.”

While presenting the report of the committee, Wamakko recommended the Senate to approve the request. The red chamber therefore approved the request when it was put to voice vote by the Senate President Godswill Akpabio.