Tinubu seeks Senate approval for N1.767trn external borrowing plan

President Bola Ahmed Tinubu has formally requested the National Assembly’s approval to implement a new external borrowing of $2.209 billion (₦1.767 trillion), as provided for in the 2024 Appropriation Act.

The borrowing, part of Nigeria’s budgetary financing plan, is aimed at addressing a portion of the ₦9.17 trillion fiscal deficit in the 2024 budget.

The President’s letter, addressed to Senate President Senator Godswill Akpabio highlighted that the request is in line with the provisions of Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003.

The borrowing plan had already been approved by the Federal Executive Council (FEC).

The correspondence also provided detailed terms and conditions for the issuance of Eurobonds in the international capital market to raise the required sum.

Tinubu authorised the Honorable Minister of Finance and Coordinating Minister of the Economy, alongside the DMO, to take all necessary steps to execute the plan upon National Assembly approval.

The letter indicated purpose of Borrowing saying it is to finance the 2024 budget deficit as part of Nigeria’s broader fiscal strategy.

The letter indicated that the amount of $2.209 billion (N1.767trillion) would be raised through Eurobonds or other external borrowing instruments.

It also indicated Terms and Conditions are detailed in an attached summary to guide the Senate’s review.

The letter concluded with an appeal for swift legislative action, emphasizing the importance of timely resolution to implement the borrowing plan.

Akpabio referred the matter to the Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamako, with instructions to report back within 24 hours.

The National Assembly’s resolution is critical to mobilizing the funds and ensuring smooth implementation of the 2024 budget.

This development marks another step in Nigeria’s efforts to manage its fiscal challenges and stimulate economic growth through strategic external financing.