President Tinubu Seeks National Assembly Approval for $2.2bn External Loan to Finance 2024 Budget Deficit

President Bola Tinubu has formally requested approval from the National Assembly for a new external borrowing plan of $2.2 billion, as part of the 2024 Appropriation Act.

The request was presented in a letter read by the Speaker of the House of Representatives, Tajudeen Abbas, during Tuesday’s plenary. If granted, the loan will help finance a portion of the N9.7 trillion budget deficit for 2024.

Additionally, the President submitted the 2025-2027 Medium-Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP) for review and approval by the National Assembly.

Tinubu also forwarded the National Social Investment Programme Establishment Amendment Bill, which aims to make the social register the primary tool for implementing the Federal Government’s social welfare initiatives.

The letter outlined, “Request for the resolution of the National Assembly for the implementation of the new external borrowing of N1,767,102,179.00 (approximately $2.209 billion) as enshrined in the 2024 Appropriation Act.”

It continued, “In accordance with Sections 21 and 27 Subsection 1 of the Debt Management Office Act of 2003 and with the approval of the Federal Executive Council, I seek the National Assembly’s resolution to raise $2.2 billion.”

The external borrowing will help finance a significant part of the $9.17 trillion budget, with a breakdown including a $1.7 billion Eurobond and $500 million in Sukuk financing.

In a second letter, the President requested prompt legislative action on the 2025-2027 MTEF and FSP, which were approved by the Federal Executive Council on November 10, 2024. The letter emphasized the importance of the National Assembly’s swift approval to ensure the timely preparation of the 2025 federal budget.

The $2.2 billion borrowing plan was approved by the Federal Executive Council last Thursday, according to PUNCH Online.