President Bola Tinubu has submitted a request to the National Assembly for approval of a new external borrowing plan amounting to N1.77 trillion, the equivalent of $2.209 billion. The proposed loan is part of the funding strategy to address the projected N9.7 trillion budget deficit for 2024.
The request was formally communicated in a letter read by the Speaker of the House of Representatives, Tajudeen Abbas, during Tuesday’s plenary session.
If approved, the loan will contribute to financing a portion of the 2024 budget deficit. In addition, President Tinubu has also forwarded the 2025-2027 Medium-Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP) to the National Assembly for review and approval.
The President’s letter further included the National Social Investment Programme (NSIP) Establishment Amendment Bill. This bill seeks to make the National Social Register the primary tool for the implementation of the Federal Government’s social welfare programs.
“I respectfully request the resolution of the National Assembly for the approval of an external borrowing of $2.209 billion (approximately N1.77 trillion), as provided for in the 2024 Appropriation Act.”
“In accordance with the provisions of Sections 21 and 27, Subsection 1, of the Debt Management Office Act, 2003, and with the approval of the Federal Executive Council, I am requesting the National Assembly’s resolution to raise the sum of $2.209 billion.”
The borrowing, which is embedded in the 2024 Appropriation Act, is aimed at part-financing the country’s $9.17 trillion budget. The proposed external borrowing will be made up of a $1.7 billion Eurobond and $500 million in Sukuk financing.
In a separate letter, the President presented the 2025-2027 MTEF and FSP, which were approved by the Federal Executive Council on November 10, 2024. He urged the National Assembly to expedite legislative action on these documents, noting that the 2025 federal budget will be prepared based on the fiscal assumptions and parameters set out in the approved MTEF and FSP.
The President’s office also expressed hope that the House of Representatives would act swiftly in considering the request.
According to The Telegraph, the Federal Executive Council approved the $2.2 billion borrowing plan last Thursday.
