Nigerian Senate Poised to Approve President Tinubu’s $2.2bn Loan Request

The Nigerian Senate is set to approve President Bola Tinubu’s fresh loan request of $2.2 billion (approximately N1.77 trillion) following his submission to the Senate and House of Representatives on Tuesday. The loan is intended to partially finance the N9.7 trillion budget deficit for the 2024 fiscal year.

Senate President Godswill Akpabio directed the Senate Committee on Local and Foreign Debts to urgently review the request and report back within 24 hours. Akpabio emphasized that the $2.2 billion loan is already incorporated in the external borrowing plan for the 2024 fiscal year.

Additionally, Tinubu presented the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for 2025-2027 to both chambers of the National Assembly. The MTEF/FSP includes key parameters such as a $75 oil price benchmark per barrel, daily oil production of 2.06 million barrels, an exchange rate of N1,400 to $1, and a projected GDP growth rate of 6.4%. These figures will guide the consideration of the N47.9 trillion 2025 budget.

In a related development, President Tinubu has also forwarded the Social Investment Programme Amendment Bill to the National Assembly. The proposed amendment aims to enhance transparency and efficiency in the implementation of social welfare programs, with the National Investment Register designated as the primary tool for identifying beneficiaries.

Meanwhile, an alarming review of the MTEF indicates that Nigeria plans to allocate N50.2 trillion for debt servicing between 2025 and 2027, with N15.3 trillion set for 2025, N15.5 trillion for 2026, and N19.4 trillion for 2027.