Tinubu Seeks National Assembly’s Approval for $2.2 Billion Loan

In a move to address Nigeria’s 2024 budget deficit, estimated at ₦9.17 trillion, President Bola Tinubu has formally requested the National Assembly’s approval for a $2.2 billion loan. This loan is part of the 2024 Appropriation Act and aligns with the Debt Management Office Establishment Act of 2003.

The proposed loan will be used to bridge the budget deficit, with a significant portion coming from a Eurobond worth at least $1.7 billion and a Sukuk financing of $500 million. The Federal Executive Council has already approved this external borrowing plan. The Medium-Term Expenditure Framework (MTEF) sets Nigeria’s federal budget at ₦47.9 trillion for 2025, with an oil benchmark of $75 per barrel, production at 2.06 million barrels per day, and an exchange rate of ₦1,400 to the dollar.

Tinubu emphasized the need for the immediate implementation of the borrowing plan as part of the 2024 budgetary framework. He also charged the Minister of Finance and the Coordinating Minister of the Economy to work with the Debt Management Office (DMO) to take necessary action required to give effect to the resolution of the National Assembly.

The Senate President, Godswill Akpabio, has referred the request to the Committee on Local and Foreign Debt for review and timely action. The president’s request is expected to be considered expeditiously, given the urgency of the budget deficit.

In addition to the loan request, Tinubu has also submitted the National Social Investment Programme Establishment Amendment Bill to make the social register the primary tool for the implementation of the Federal Government’s social welfare programmes. This move aims to enhance the effectiveness of the government’s social interventions.

The approval of the National Assembly is crucial for the implementation of the borrowing plan and the MTEF. The timely passage of these submissions will enable the government to address the budget deficit and ensure the effective implementation of its programmes and policies.

Nigeria’s budget deficit has been a recurring challenge, and the government has sought various measures to address it. The $2.2 billion loan is expected to provide temporary relief, but experts argue that the government must also focus on increasing revenue generation and reducing expenditure.

As the National Assembly considers the loan request, many Nigerians are watching with keen interest. The government’s ability to manage the economy effectively will have a significant impact on the lives of citizens.