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President Bola Tinubu has reached out to the National Assembly for approval to secure a new external loan of $2.209 billion (N1.767 trillion), as outlined in the fiscal guidelines of the 2024 Appropriation Act.
This borrowing proposal has, however, ignited concerns among experts, who have warned that the country risks deepening its financial instability by accumulating more debt, potentially jeopardizing future economic growth.
The borrowing plan had already been approved by FEC. The letter also provided detailed terms and conditions for the issuance of Eurobonds in the international capital market to raise the required sum.
President Tinubu has formally submitted to the Senate the 2025–2027 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP 2025–2027), following its approval by the Federal Executive Council (FEC) on November 10, 2024.
Seeking an expedited review, the MTEF/FSP request was promptly handed over to the Senate Committees on Finance and National Economic Planning, with a mandate to deliver a report in the shortest time possible.
During plenary, the President addressed a letter to Senator Godswill Akpabio, President of the Senate, and Tajudeen Abbas, Speaker of the House of Representatives, stating that the request is in accordance with the provisions laid out in Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003.
Having gained the necessary approval from the Federal Executive Council (FEC), the borrowing plan was further detailed in the letter, which outlined the specific terms and conditions for the issuance of Eurobonds in the global capital markets to raise the required funds.
Read also: Report: Tinubu Govt Took $6.45B Loan From World Bank
President Tinubu authorized the Minister of Finance and Coordinating Minister of the Economy, alongside the DMO, to take all necessary steps to execute the plan upon National Assembly approval.
President Tinubu explained that the purpose of the borrowing would be to finance the 2024 budget deficit as part of Nigeria’s broader fiscal strategy, adding that the money would be raised through Eurobonds or other external borrowing instruments.
With an eye on ensuring efficient execution, the President called on the National Assembly to expedite their review, emphasizing that a prompt resolution is key to the successful implementation of the borrowing plan.
Akpabio passed the responsibility to the Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamako (APC, Sokoto), urging them to deliver a report within 24 hours for immediate consideration.
