The senate has approved a $2.2 billion loan request by
President Bola Tinubu.
The upper legislative chamber approved the loan request
after it considered a report by Aliyu Wamakko, chair of the committee on local
and foreign debt.
The sum – equivalent to N1.7 trillion using the exchange
rate of N800 to a dollar – will be used to finance the N9.1 trillion deficit in
the 2024 budget.
While presenting his report, Wamakko said the funds would be
raised through instruments like the Eurobonds and Sukuk.
Tinubu had asked the national assembly to approve the loan
request on Tuesday.
The federal executive council (FEC) had $2.2 billion
external borrowing plan to “strengthen the country’s finances and support
economic reforms”.
Wale Edun, minister of finance and coordinating minister of
the economy, had said approximately $1.7 billion is expected from the eurobond
offer and $500 million from the sukuk financing.
Edun said the borrowing would happen this fiscal year,
adding that the ultimate funding arrangement would be decided by market
conditions and the transaction adviser’s counsel.
The federal government has proposed N47.9 trillion as the
total expenditure in the 2025 fiscal year.
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