Nigeria’s President , Bola Tinubu has requested the Senate’s approval for a new external borrowing of about $2.2 billion to finance Nigeria’s 2024 budget deficit, estimated at ₦1.76trillion
This was contained in a letter addressed to the Senate which was presented at the Federal Executive Council meeting on November 10, 2024.
Pix: President Timubu
He explained that the request is in line with the provisions of the 2024 Appropriation Act, as well as Sections 21 and 27 of the Debt Management Office Establishment Act, 2003, and has been approved by the Federal Executive Council (FEC).
As enshrined in the 2024 Appropriation Act, in accordance with the provisions of Section 21 and 27 of the Debt Management Office Establishment Act of 2003 and the approval of the Federal Executive Council. The letter reads in parts
” I write to request for a resolution of the National Assembly to raise the sum of $2.2bn provided as new external borrowing in the 2024 Appropriation Act required to finance the budget deficits of about N1.76 trillion”.
The President emphasised the need for the immediate implementation of the borrowing plan as part of the 2024 budgetary framework. He outlined indicative terms and conditions, including a proposal to issue a Eurobond worth at least $1.7 billion but not exceeding $2.2 billion.
He charged the Minister of Finance and Coordinating minister of the economy, working with the DMO to take necessary action required to give effect to the resolution of the National Assembly.
“While looking foward to the kind consideration and
timely issuance of the resolution by the National Assembly, please accept the assurances of my highest regards”, the letter read.
The Senate President ,Godswill Akpabio,
referred the request to the Committee on Local and Foreign Debt to bring back to the Chambers within the next 24 hours.
The President in another letter read by Akpabio announced the transmittion of the 2025-2027 Medium Term Expenditure Framework for 2025-2027 and the Fiscal Strategy Paper
The MTEF sets Nigeria’s federal budget at ₦47.9 trillion for 2025
The plan also includes ₦9.22 trillion in new borrowing to finance the deficit, with an oil benchmark of $75 per barrel, production at 2.06 million barrels per day, and an exchange rate of ₦1,400 to the dollar.
“The Senate is invited to note that as the 2025 budget will be prepared based on the parameters and fiscal assumptions of the approved 2025-2027. It is imperative to sign an ambitious legislation on this submission.
“While I trust that the Senate will consider the passage of this submission expeditiously, please accept this with the assurances of my highest regards”, the letter read.