On Thursday, the Nigerian Senate approved a $2.209 billion external loan for President Bola Tinubu, a crucial step in financing the country’s 2024 budget. The approval was granted after the Senate considered a report from the Senate Committee on Local and Foreign Debts, led by its Chairman, Aliyu Wamakko.
The loan, which is equivalent to approximately N1.767 trillion, will be used as part of the funds to support Nigeria’s N28.7 trillion budget for the year 2024. The funds are to be sourced from Eurobonds in international capital markets, alongside other gains from financial laws of the country. Eurobonds are debt instruments issued in currencies other than the home currency of the issuing country, and they serve as a means to raise capital while providing flexibility in the choice of currency.
President Tinubu made the request for the loan on Tuesday, citing the provisions of Sections 21 (1) and 27 (1) of the Debt Management Office. His request had already received the approval of the Federal Executive Council before it was forwarded to the Senate. During the plenary session, Wamakko presented the report and emphasized that approval of the loan would bolster the country’s foreign reserves.
“If the external borrowing request is approved, it will strengthen the nation’s foreign reserve,” said Wamakko, a senator representing Sokoto North under the All Progressives Congress (APC). He further assured that the National Assembly would work closely with the Federal Ministry of Finance to ensure that the borrowed funds are properly utilized once accessed.
Following the presentation, the Deputy Senate President, Barau Jibrin, presided over the plenary session and facilitated the approval process. Notably, the request was not subject to any extensive debate, as Jibrin described it as “straightforward” and emphasized that it was in the best interest of the country.
“The request is clear and in the national interest,” Jibrin said before formally approving the loan. He also thanked the committee members for their diligent work in presenting the recommendations to the Senate.
