How I will raise N1.7trn external loan – Tinubu

President Bola Tinubu on Tuesday explained that his administration plans to raise a N1.767 trillion ($2.209 billion) external loan through the issuance of Eurobonds, Sovereign Sukuk, and Bridge Finance/Syndicated Loans.

The President on Tuesday requested the National Assembly’s approval for Nigeria to borrow N1.767 trillion ($2.209 billion) externally.

The President stated this in a letter to the Speaker of the House of Representatives, Tajudeen Abbas, read at the plenary on Tuesday.

He explained that the borrowing would be used to finance the 2024 budget deficit.

The new external borrowing according to the President was part of the N7.828 trillion approved as new borrowings in the 2024 Appropriation Act.

The president recalled that the 2024 Appropriation Act approved the sum of N7,828,529,477,860.00 as New Borrowings to part-finance the 2024 budget deficit of N9.179 trillion.

The President stated that the request is in line with section 21(1) and 27(1) of the Debt Management Office Act, adding that it was approved by the Federal Executive Council.

Tinubu said the borrowed funds would be used to stabilise the economy, support sustainable growth and development, finance key projects in priority sectors, increase external reserves, and support the Naira exchange rate.

On how the federal government will raise the funds, President Tinubu stated that the government plans to raise the funds through the issuance of Eurobonds, Sovereign Sukuk, and Bridge Finance/Syndicated Loans.

The president explained that all the options would be pursued simultaneously for the capital raising of USD2.21 billion considering the costs, relative benefits, and timing of each of them to the country.

The President, however, noted that emphasis would be on the Issuance of Eurobonds which he said is typically faster to conclude.