In a swift move, the Nigerian Senate has approved President Bola Tinubu’s request for a ₦1.767 trillion loan (approximately $2.09 billion), just 48 hours after receiving the proposal. This loan aims to bridge a portion of the ₦9.7 trillion deficit in the ₦28.7 trillion 2024 budget.
The Senate’s Committee on Local and Foreign Debts, chaired by Senator Aliyu Wammako, reviewed the request and presented its findings during a plenary session. Wammako emphasized the loan’s necessity for ongoing projects critical to Nigeria’s growth and development. He noted that this borrowing aligns with Nigeria’s Debt Management Strategy, which focuses on reducing borrowing costs, extending public debt maturity, and enhancing external reserves.
The loan will be sourced from the international capital market, with the government expecting to secure $1.7 billion from Eurobonds and $500 million through Sukuk financing. The Senate approved the request unanimously during a committee of supply session, with Deputy Senate President Jibrin Barau praising Senator Wammako and his committee for their efficient handling of the matter.
This approval is a significant step towards addressing Nigeria’s budget deficit and supporting the country’s economic growth and development.
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