The Senate has approved President Bola Tinubu’s request for a $2.2 billion loan on Thursday 21st November 2024.
The budget, which is to address a ₦9.7 trillion deficit in the 2024 fiscal year budget, was approved during Thursday’s plenary session, following the presentation of a report by the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko.
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The Deputy Senate President, Jibrin Barau, who presided over the session, praised the committee for its diligence and speed in reviewing the proposal. He highlighted the importance of the loan in stabilizing the nation’s finances and ensuring the government meets its fiscal obligations.
President Tinubu’s loan request was first presented to the National Assembly on Tuesday through a letter read during the plenary sessions of both the Senate and the House of Representatives. The letter described the $2.2 billion loan, equivalent to ₦1.77 trillion, as an integral part of the administration’s external borrowing plan for 2024.
Speaking on the loan, Senate President Godswill Akpabio said the request aligns with the government’s fiscal strategy to bridge the budget gap and sustain economic growth.
Akpbio had tasked the Senate Committee on Local and Foreign Debts to expedite its review of the loan and submit a report within 24 hours. Although the committee missed the initial deadline, its findings were presented on Thursday, leading to swift approval.
The approved loan is expected to partially finance the 2024 budget, which aims to address critical sectors such as infrastructure, healthcare, and education while managing existing debts.
This development underscores the administration’s resolve to address fiscal challenges while navigating the complexities of global financial markets. With the Senate’s approval, the next steps will involve implementing the borrowing plan and ensuring accountability in its utilization.
However, the borrowing plan has drawn mixed reactions, with some stakeholders raising concerns about Nigeria’s growing debt profile.
Further details are expected as the government outlines the specific allocation and disbursement of the funds in the coming weeks.
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