Tinubu Seeks House Approval for $2.2bn Loan to Finance Budget Deficit
President Bola Tinubu has requested the House of Representatives to approve a $2.2 billion external loan to finance part of Nigeria’s 2024 budget deficit of $9.179 trillion.
In a letter read by the Speaker of the House, Tajudeen Abbas, during Tuesday’s plenary, the president explained that the loan was included in the 2024 Appropriation Act and is essential to bridge the nation’s budgetary shortfall.
“I write to request a resolution of the National Assembly to raise the sum of ₦1,767,610,321,779, equivalent to $2.209 billion, at the budget exchange rate of $1 to 800 Naira, as new external borrowing in the 2024 Appropriation Act to part-finance the budget deficit of $9.179 trillion in the 2024 budget,” the president’s letter stated.
The president also emphasised that the request aligns with the Debt Management Office (DMO) Establishment Act 2023 and has already received approval from the Federal Executive Council (FEC).
Also Read: Tinubu’s Government Borrows $2.25 Billion from World Bank to Boost Nigeria’s Economy
On November 13, it was reported that FEC had approved for a $2.2 billion financing program to support the federal government’s external borrowing plans. Minister of Finance Wale Edun, who disclosed this, described the loan as critical to addressing Nigeria’s financial needs and supporting economic recovery.
“The approval will allow us to complete the government’s external borrowing program, which includes accessing the international capital market for Eurobonds and Sukuk bonds,” Edun stated.
