Senate Set To Approve Tinubu’s $2.2 Billion Loan Request

The Senate is expected to approve President Bola Tinubu’s $2.2 billion (approximately N1.77 trillion) external loan request today (Wednesday).

The loan, part of the external borrowing plan, is aimed at financing the N28.7 trillion 2024 budget, specifically to address the ₦9.7 trillion budget deficit.

President Tinubu’s request was conveyed in separate letters read during Tuesday’s plenary sessions in both the Senate and the House of Representatives.

The president justified the loan as necessary for partially financing the deficit while implementing key government programs.

In response to the letter, Senate President Godswill Akpabio directed the Senate Committee on Local and Foreign Debts to review the request and submit its report within 24 hours.

Akpabio stated, “The Presidential request for $2.2bn, equivalent to ₦1.77tn, is already enshrined in the external borrowing plan for the 2024 fiscal year.

“The Senate Committee on Local and Foreign Loans should therefore give the request expeditious consideration and report back within 24 hours.”

Additionally, Tinubu submitted the Medium-Term Expenditure Framework and Fiscal Strategy Paper for 2025–2027 to both the Senate and the House of Representatives.

Akpabio directed the Senate Committee on Finance, National Planning, and Economic Affairs to consider the MTEF/FSP documents and report back within one week.

Key parameters in the MTEF/FSP include a $75 oil price benchmark per barrel, daily oil production of 2.06 million barrels, an exchange rate of ₦1,400 to $1, and a targeted GDP growth rate of 6.4 per cent.

These figures form the basis for consideration and approval of the proposed ₦47.9tn 2025 budget.