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The Nigerian Senate has officially approved a new loan request of $2.2 billion (approximately ₦1.77 trillion) made by President Bola Tinubu. The approval came after a report submitted by Aliyu Wamakko, the chairman of the Senate committee on local and foreign debt.
This substantial loan is intended to help finance the ₦9.1 trillion deficit projected in the 2024 budget. President Tinubu had earlier provided letters to both the Senate and House of Representatives, outlining that the funds would partially cover the ongoing budget gap for the upcoming fiscal year.
Senate President Godswill Akpabio emphasized the urgency of the request, directing the Senate Committee on Local and Foreign Debts to expedite their review process and report back within 24 hours. He noted, “The Presidential request for $2.2 billion, equivalent to ₦1.77 trillion, is already included in the external borrowing plan for the 2024 fiscal year.”
In conjunction with the loan request, President Tinubu submitted the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for 2025-2027 for legislative consideration. Akpabio instructed the Senate Committee on Finance, National Planning, and Economic Affairs to examine these documents and report back within one week.
Key parameters highlighted in the MTEF/FSP include a benchmark oil price of $75 per barrel, daily oil production set at 2.06 million barrels, an exchange rate assumption of ₦1,400 to $1, and a targeted GDP growth rate of 6.4%. These parameters are crucial for the deliberation and approval of the proposed ₦47.9 trillion budget for 2025.
Additionally, President Tinubu has introduced the Social Investment Programme Amendment Bill to the National Assembly. This proposed amendment aims to enhance the framework for implementing Nigeria’s social welfare programs, ensuring increased transparency and efficiency.
Tinubu has indicated that the amendment will designate the National Investment Register as the primary tool for identifying beneficiaries of social investment initiatives. He expressed that this move would facilitate data-driven welfare programs, significantly enhancing social protection for the nation’s most vulnerable groups. “The amendment will make our social and welfare programs more transparent, efficient, and impactful in addressing the needs of vulnerable Nigerians,” he stated.
These legislative developments underline the ongoing efforts by President Tinubu’s administration to address Nigeria’s economic challenges amid increasing scrutiny over fiscal management and social welfare initiatives.
