Tinubu Writes NASS Seeks $2.2B (N1.77trn) Fresh Loan

Tinubu Writes NASS for N1.77trn Fresh Loan Approval to Address Budget Deficit

iexclusivenews – President Tinubu writes NASS seeking approval for a new external borrowing of $2.209 billion (₦1.767 trillion) as part of Nigeria’s budgetary financing plan. This request aims to address a portion of the ₦9.17 trillion fiscal deficit in the 2024 budget.

The President’s letter, addressed to both the Senate and the House of Representatives, outlines the necessity of this borrowing to ensure the smooth implementation of the 2024 budget.

This online news media reports that President Bola Tinubu has formally written to the Senate and the House of Representatives, requesting approval for a new external borrowing of $2.209 billion (₦1.767 trillion). This request is in line with the provisions of the 2024 Appropriation Act and is part of Nigeria’s broader fiscal strategy to address the significant budget deficit.

According to President Tinubu, the borrowing is essential to finance the 2024 budget deficit. The request is part of a comprehensive plan to manage the ₦9.17 trillion fiscal shortfall. The President emphasized that the funds would be raised through the issuance of Eurobonds or other external borrowing instruments in the international capital market.

The President’s letter, addressed to Senate President Godswill Akpabio and House Speaker Tajudeen Abbas, highlighted that the request aligns with Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003. The borrowing plan has already received approval from the Federal Executive Council (FEC). The letter also provided detailed terms and conditions for the issuance of Eurobonds to raise the required sum.

However, President Tinubu appealed for swift legislative action, stressing the importance of timely resolution to implement the borrowing plan. The matter has been referred to the Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamako, APC, Sokoto, with instructions to report back within 24 hours. The National Assembly’s resolution is critical to mobilizing the funds and ensuring the smooth implementation of the 2024 budget.

In addition to the borrowing request, President Tinubu has forwarded the 2025–2027 Mid-Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) to the Senate. Approved by the FEC on November 10, 2024, the MTEF/FSP seeks expeditious passage and has been referred to the Senate Committees on Finance and National and Economic Planning, led by Senator Sani Musa, APC, Niger East.

The President’s letter included a summary of the terms and conditions for the proposed borrowing. The Honourable Minister of Finance and Coordinating Minister of the Economy, along with the DMO, have been authorized to take all necessary steps to execute the plan upon National Assembly approval. The detailed terms and conditions are intended to guide the Senate’s review and ensure transparency in the borrowing process.

President Tinubu explained that the borrowing is crucial for addressing the budget deficit and supporting Nigeria’s broader fiscal strategy. The $2.209 billion (₦1.767 trillion) will be used to finance various projects and initiatives outlined in the 2024 budget. The President emphasized the need for legislative support to ensure the timely implementation of these plans.

The request for a new external borrowing of $2.209 billion (₦1.767 trillion) by President Bola Tinubu underscores the urgent need to address Nigeria’s budget deficit. As Tinubu writes NASS, seeking approval for this significant financial move, the swift legislative action will be crucial in mobilizing the necessary funds and ensuring the smooth implementation of the 2024 budget. The detailed terms and conditions provided in the President’s letter aim to guide the Senate’s review and ensure transparency in the borrowing process.