Senate approves Tinubu’s N1.767trn loan request

Barely 48 hours after President Bola Tinubu requested the senate to the Senate to approve a loan request of $2.09 billion (equivalent to N1.767 trillion) the upper legislative chamber has given its approval.

The loan is part of the funding for the N9.7 trillion deficit in the N28.7 trillion 2024 budget.

In separate letters to both chambers of the National Assembly earlier this week, President Tinubu sought the loan approval, emphasizing its necessity for financing ongoing projects and programs critical to national development.

The Senate swiftly tasked its Committee on Local and Foreign Debts, chaired by Senator Aliyu Wammako (APC, Sokoto North), to review the request.

During Thursday’s plenary, Senator Wammako presented the committee’s report, which strongly supported the loan request.

In the report, titled Implementation of New External Borrowing of N1,767,610,321,779.00 ($2.09 billion) in the 2024 Appropriation Act through Eurobonds and Other Sources, Wammako explained the loan’s importance.

He stated that it would help implement the Debt Management Strategy, reduce borrowing costs, lengthen debt maturity, free up domestic market space, and boost Nigeria’s external reserves.

The report recommended raising the loan through Eurobonds or other financing options in the International Capital Market, subject to market conditions.

The committee also proposed that any exchange rate surplus from the loan be allocated exclusively to capital projects in 2024 to drive infrastructure and developmental growth.

The Senate unanimously approved the loan during the session, with no opposition raised. Deputy Senate President Jibrin Barau, who presided over the plenary, praised the Wammako-led committee for its diligent review and recommendations.

This approval reinforces the government’s plan to address budget deficits while focusing on national development and economic stability.