News

Senate Moves To Approve Tinubu’s $2.2 Billion Loan Request

Published

1 month ago

Nov 20, 2024.

The Nigerian Senate is set to approve President Bola Tinubu’s $2.2 billion (approximately ₦1.77 trillion) external loan request aimed at addressing the ₦9.7 trillion deficit in the 2024 budget.

The request, outlined in letters presented during Tuesday’s plenary sessions of the Senate and House of Representatives, is part of the government’s external borrowing plan for the 2024 fiscal year.

EDITOR’S PICKS

EKO HOT BLOG reports that Tinubu stated that the loan is crucial for partially financing the deficit while implementing key national programs.

Senate President Godswill Akpabio directed the Senate Committee on Local and Foreign Debts to expedite its review of the loan request and submit a report within 24 hours. He emphasized that the loan request aligns with the 2024 fiscal year borrowing plan.

Additionally, President Tinubu presented the Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) for 2025–2027.

Senate Tinubu’s $2.2 Billion Loan

The documents outline key economic parameters, including a $75 per barrel oil price benchmark, a daily oil production target of 2.06 million barrels, an exchange rate of ₦1,400 to $1, and a projected GDP growth rate of 6.4%.

These parameters will serve as the foundation for the proposed ₦47.9 trillion 2025 budget.

Akpabio tasked the Senate Committee on Finance, National Planning, and Economic Affairs with reviewing the MTEF/FSP and submitting its findings within one week.

The approval of these proposals is expected to shape Nigeria’s fiscal policy and economic planning in the coming years.