President Bola Tinubu has written to the National Assembly, seeking approval for a new external borrowing plan amounting to N1.767 trillion (approximately $2.209 billion).
This request is part of the 2024 appropriation act and aims to address the budget deficit of N9.7 trillion for the 2024 fiscal year.
The president’s letter, read during a plenary session, also included the submission of the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for 2025-2027. These documents outline the fiscal parameters and assumptions for the upcoming budget and emphasize the need for swift legislative action.
If approved, the loan will be used to finance key projects in priority sectors, support sustainable growth and development, and stabilize the economy. The funds are expected to be raised through the issuance of Eurobonds, Sovereign Sukuk, and Bridge Finance/Syndicated Loans.
This move comes as the Central Bank of Nigeria recently reported that the federal government spent $3.58 billion servicing the country’s foreign debt in the first nine months of 2024.
The president’s request highlights the importance of timely resolution to implement the borrowing plan and ensure the smooth execution of the 2024 budget.
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