The Senate and House of Representatives have approved a $2.2 billion loan request from President Bola Tinubu to address the N9.1 trillion deficit in the 2024 budget.
The approval came on Thursday after both chambers considered reports from their respective committees on local and foreign debts. The funds, equivalent to approximately N1.7 trillion at an exchange rate of N800 to the dollar, will be raised through financial instruments such as Eurobonds and Sukuk.
Aliyu Wamakko, chair of the Senate Committee on Local and Foreign Debts, presented the report and emphasized the significance of the funding for the country’s economic framework.
Earlier this week, Tinubu submitted the loan request to the National Assembly following the Federal Executive Council’s (FEC) approval of the borrowing plan. According to Wale Edun, Minister of Finance and Coordinating Minister of the Economy, the $2.2 billion will be sourced from $1.7 billion in Eurobonds and $500 million through Sukuk financing.
Edun further clarified that the borrowing will be executed within this fiscal year, with the final funding approach determined by market conditions and guidance from transaction advisers.
The federal government has also proposed N47.9 trillion as the total expenditure for the 2025 fiscal year, reflecting its broader financial and economic reform agenda.
