The Senate is poised to approve President Bola Tinubu’s $2.2 billion (approximately N1.77 trillion) loan request today (Wednesday). This loan, part of the external borrowing plan, is critical to financing the N28.7 trillion 2024 budget, particularly the N9.7 trillion deficit.
In letters read at the Senate and House of Representatives plenary sessions on Tuesday, President Tinubu highlighted the loan’s necessity for addressing fiscal gaps in the 2024 fiscal year.
Senate President Godswill Akpabio directed the Committee on Local and Foreign Debts to expedite its review of the request and report back within 24 hours.
“The Presidential request for $2.2 billion, equivalent to N1.77 trillion, is already enshrined in the external borrowing plan for the 2024 fiscal year,” Akpabio stated.
Economic Framework and Budget Projections
Accompanying the loan request, Tinubu submitted the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for 2025–2027. These documents, also presented to the House of Representatives, set the groundwork for the proposed N47.9 trillion 2025 budget.
Key highlights of the MTEF/FSP include:
- Oil Price Benchmark: $75 per barrel
- Daily Oil Production: 2.06 million barrels
- Exchange Rate: N1,400 to $1
- GDP Growth Target: 6.4%
The Senate Committee on Finance, National Planning, and Economic Affairs has one week to review the documents and present its findings.
Social Welfare Reform Proposal
In a related development, Tinubu also submitted the Social Investment Programme Amendment Bill, aimed at enhancing transparency and efficiency in implementing social welfare programs.
The amendment seeks to designate the National Investment Register as the primary tool for targeting beneficiaries, ensuring data-driven and equitable delivery of welfare initiatives.
“The amendment will make our social and welfare programs more transparent, efficient, and impactful in addressing the needs of vulnerable Nigerians,” Tinubu explained.
Impact of Loan Approval
If approved, the $2.2 billion loan will bolster government funding for critical sectors, reduce the fiscal deficit, and support efforts to stabilize the economy. However, the reliance on borrowing continues to raise concerns about Nigeria’s debt sustainability.
The Senate’s swift action reflects the urgency of addressing the nation’s economic challenges while advancing President Tinubu’s policy objectives.