The Senate has approved President Bola Tinubu’s request for a $2.2 billion loan aimed at addressing the N9.1 trillion deficit in the 2024 budget.

This decision was made during a session on November 21, after the Senate reviewed a report by Aliyu Wamakko, the chair of the Committee on Local and Foreign Debt. Deputy Senate President Jibrin Barau commended the committee for their swift and thorough evaluation of the loan proposal.

The proposed loan, consisting of a $1.7 billion Eurobond and $500 million in Sukuk financing, aligns with provisions in the 2024 Appropriation Act. Tinubu explained that the funds are crucial for sustaining fiscal stability, following the endorsement of the borrowing plan by the Federal Executive Council last week.

READ ALSO: Tinubu seeks approval for $2.2bn external loan to finance 2024 budget

Credible News recalls that in addition to the borrowing request, the President also submitted the 2025-2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper for legislative approval. Tinubu emphasized the urgency of passing these documents, as they will form the basis for preparing Nigeria’s 2025 budget.

The $2.2 billion external borrowing plan reflects Tinubu’s strategy to address Nigeria’s financial challenges amidst growing fiscal pressures. Critics and analysts alike will be watching closely to assess the impact of these measures on the nation’s economic stability and debt sustainability.

Credible News.ng