Tinubu submits NASS and requests approval for a new loan of N1.77 trillion

As stipulated in the 2024 Appropriations Act, President Bola Tinubu has written to the Senate and the House of Representatives to request approval of a new external borrowing of $2.209 billion (₦1.767 trillion).

The President stated that the proposal was a component of Nigeria’s budgetary finance plan, which aims to partially resolve the fiscal imbalance of ₦9.17 trillion in the 2024 budget.

Additionally, on November 10, 2024, the FEC adopted the 2025–2027 Mid-Term Expenditure Framework and Fiscal Strategy Paper (FSP), MTEF/FSP 2025–2027, which President Tinubu sent to the Senate.

The Senate Committees on Finance and National and Economic Planning, led by Senator Sani Musa of the APC, Niger East, were tasked with reviewing the MTEF/FSP request, which aims for swift passage, and providing a report as soon as possible.

The request was in accordance with Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003, according to the President’s letter, which was sent to the Senate President, Senator Godswill Akpabio, and the Speaker of the House of Representatives, Tajudeen Abbas, during plenary. The Federal Executive Council (FEC) had previously authorized the borrowing plan.

In order to raise the necessary funds, the letter also included comprehensive terms and conditions for the issuance of Eurobonds on the global capital market.

After the National Assembly approved the plan, President Tinubu gave the Honorable Minister of Finance and Coordinating Minister of the Economy, along with the DMO, the authority to take all necessary actions to carry it out.

As part of Nigeria’s larger fiscal policy, President Tinubu clarified that the $2.209 billion (N1.767 trillion) in borrowing would be used to pay the 2024 budget deficit. Eurobonds or other external borrowing instruments will be used to raise the funds.
Additionally, it stated that a summary of the Terms and Conditions is attached for the Senate’s review.

The President made a strong case for prompt parliamentary action, stressing how crucial a prompt resolution is to carrying out the borrowing plan.

With a 24-hour turnaround time, Akpabio sent the case to the Committee on Local and Foreign Debts, which is led by Senator Aliyu Wamako of the APC, Sokoto.

The resolution passed by the National Assembly is essential to raising the money and guaranteeing the 2024 budget is implemented smoothly.