President Bola Tinubu Seeks National Assembly Approval for $2.2 Billion External Loan.

Written on 19/11/2024

Thisday Live

On Tuesday, President Bola Tinubu requested the approval of the National Assembly to raise N1,767,610,321,779 (approximately $2.2 billion) in new external borrowing as part of the 2024 Appropriation Act.

This move aims to finance a significant budget deficit of N9.179 trillion. The proposed loan is part of the government's broader strategy to manage fiscal challenges and fund critical national expenditures.

The request underscores the nation's ongoing efforts to secure financing for its budget while addressing the economic constraints posed by inflation and other financial pressures.

The letter, dated November 15, was read on the floor of the House on Tuesday by the Speaker, Hon. Tajudeen Abbas.

The president said: “Following the provisions of Sections 21(1) and 27(1) of the Debt Management Office (DMO) (Establishment, Etc.) Act, 2003, and the approval of the Federal Executive Council, I write to request for a Resolution of the National Assembly to raise the sum of N1,767,610,321,779.00 (the equivalent of $2,209,512,902.22 at the Budget Exchange Rate of USD1.00/N800) provided as New External Borrowing in the 2024 Appropriation Act to part finance the budget deficit of N9.179 trillion.

“The Right Honourable Speaker may wish to recall that the 2024 Appropriation Act approved the sum of N7,828,529,477,860.00 as New Borrowings to part-finance the 2024 budget deficit of N9.179 trillion.

“The total New Borrowings of N7.828 trillion was further subdivided into New Domestic Borrowing of N6.061 trillion and New External Borrowing of N1.767 trillion (Table 1). The latter is the subject of this request.