Tinubu Seeks Lawmakers’ Approval For $2.2 Billion External Loan
President Bola Tinubu has formally requested the House of Representatives to approve external borrowing of $2.209 billion to help address the N9.179 trillion deficit in the 2024 budget. The proposal was disclosed in a letter read by Speaker Tajudeen Abbas during Tuesday’s plenary session.
The president’s request aligns with provisions in the Debt Management Office (DMO) Establishment Act 2023 and has already received approval from the Federal Executive Council (FEC). Tinubu emphasized the urgency of legislative approval to facilitate the financing plan.
Details of the Request
Tinubu’s letter outlined plans to raise the equivalent of N1.77 trillion at the 2024 budget exchange rate of N800 per dollar. The external borrowing forms part of a broader financing strategy that includes issuing Eurobonds and Sukuk bonds in the international capital market.
Additionally, Tinubu submitted the 2025–2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP), which will guide the preparation of the 2025 federal budget. The president urged lawmakers to expedite action, noting the critical role of the framework in ensuring fiscal sustainability and effective budget planning.
Amendment to Social Investment Program Bill
The president also presented the National Social Investment Program Agency Establishment Amendment Bill 2024 for consideration. The amendment seeks to make the National Social Register the primary tool for identifying beneficiaries of social investment programs. Tinubu stated that this change would ensure the programs are data-driven, transparent, and effectively targeted at vulnerable Nigerians.
FEC Approval and Broader Financing Strategy
The $2.2 billion borrowing proposal received FEC approval last week. Finance Minister Wale Edun described it as a vital component of the federal government’s economic recovery plan. Speaking after the FEC meeting, Edun highlighted the significance of leveraging external financing to meet budgetary needs and support ongoing economic recovery efforts.
“This financing program includes options such as Eurobonds and Sukuk bonds to achieve fiscal objectives,” Edun noted.
The requests signal the administration’s strategic focus on addressing fiscal challenges while driving social welfare and economic reforms. Lawmakers are expected to deliberate on these proposals in the coming weeks.
