The Nigerian Senate, on Thursday, approved President Bola Tinubu's request for a $2.2 billion external borrowing plan to help fund the N9.7 trillion deficit in the 2024 budget.
The decision came after the Senate adopted the report of its Committee on Local and Foreign Debts, led by Senator Aliyu Wammako (APC - Sokoto), during plenary.
President Tinubu had formally submitted the borrowing request to both chambers of the National Assembly on Tuesday, November 19, emphasizing its necessity for ongoing projects and programs outlined in the 2024 appropriation bill. Following this, the Senate directed the relevant committee to expedite its review and report back within 24 hours.
While presenting the committee's findings, Senator Wammako justified the loan request, stating that it was critical for the nation’s economic growth and development.
“The loan will support the execution of key projects and programs in the 2024 budget. It will also contribute to the implementation of Nigeria’s debt management strategy, reduce borrowing costs, and free up space in the domestic market for other borrowers while boosting external reserves,” he explained.
The approved borrowing plan includes:
- Issuance of Eurobonds in the International Capital Market (ICM).
- Issuance of debut sovereign Sukuk in the ICM.
- Bridge and syndicated loans, subject to prevailing market conditions.
The plan is to secure the loan at an exchange rate of ₦800 to $1, as stipulated in the 2024 budget.
The Senate unanimously approved the borrowing request through a voice vote. Senator Jibrin Barau (APC - Kano), Deputy President of the Senate, who presided over the plenary, commended Senator Wammako and his committee for their swift and thorough work.
This approval marks a significant step in addressing the budgetary shortfall while fueling critical infrastructure and economic projects across the nation. However, it also raises questions about Nigeria’s growing debt profile and its long-term economic implications.
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