By Aliu Akeem
President Bola Tinubu has officially requested the National Assembly’s approval to secure a $2.2 billion external loan to address Nigeria’s growing budgetary needs. The request was presented in a formal letter read by House Speaker Tajudeen Abbas during Tuesday’s plenary session. This loan, integrated into the 2024 Appropriation Act, aims to bridge the N9.7 trillion deficit in the national budget.
According to President Tinubu, the proposed external borrowing plan comprises a $1.7 billion Eurobond and $500 million from Sukuk financing. Both components align with the provisions of Nigeria’s Debt Management Office Act of 2003 and have been endorsed by the Federal Executive Council.
The President’s letter emphasized, “The new external borrowing enshrined in the 2024 Appropriation Act will partially finance the budget, totaling approximately $9.17 trillion.” He further urged the legislature for swift approval to ensure timely implementation of critical projects tied to this borrowing plan.
Budgetary Deficits and Legislative Considerations
The 2024 budget’s expansive scope has necessitated additional funding sources to meet infrastructure, healthcare, and social welfare demands. In tandem with the loan request, President Tinubu submitted the 2025–2027 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for consideration.
The request also included a bill to amend the National Social Investment Programme, positioning the social register as the primary mechanism for implementing government welfare initiatives. This move underscores the administration’s commitment to addressing poverty alleviation and economic development.
Speaker Abbas, while reading the communication, quoted Tinubu’s request: “In accordance with Sections 21 and 27 Subsection 1 of the Debt Management Office Act, I request the resolution of the National Assembly to raise $2.209 billion to fund key areas of our budget deficit.”
International Assistance and Economic Context
Nigeria has grappled with economic challenges stemming from subsidy removals and fluctuating global oil prices. To cushion these impacts, financial support from the World Bank and African Development Bank was recently secured, totaling $3 billion. These funds complement the current borrowing plan, aimed at stabilizing the economy and fostering development across sectors.
The loans are earmarked for significant infrastructure upgrades, healthcare investments, and social welfare enhancements. Tinubu assured lawmakers that rigorous economic evaluations informed project selection to ensure maximum socio-economic benefits.
