President Bola Tinubu has formally requested the National Assembly to approve a ₦1.767 trillion external loan to help address the ₦9.7 trillion deficit in Nigeria’s 2024 budget.
The request, detailed in a letter to Senate President Godswill Akpabio and House Speaker Tajudeen Abbas, was read during Tuesday’s plenary sessions.
The president highlighted that the loan, already endorsed by the Federal Executive Council (FEC), complies with the Debt Management Office Act. If approved, the funds will be allocated to key national projects in sectors such as power, transportation, agriculture, and defense. Additionally, a portion will be deposited into the Central Bank of Nigeria to boost external reserves and stabilize the Naira.
To secure the funds, Tinubu proposed three financing options. These include the issuance of Eurobonds in the International Capital Market (ICM), leveraging the Sovereign Sukuk with a potential $500 million debut issuance backed by the Islamic Development Bank Group, and seeking loans from major financial institutions like Citigroup and Goldman Sachs under a Bridge Finance/Syndicated Loans scheme. The government plans to prioritize Eurobonds due to their efficiency but will explore all options simultaneously.
President Tinubu also submitted the Medium Term Expenditure Framework and Fiscal Strategy Paper (2025-2027) to lawmakers, along with a proposed amendment to the National Social Investment Programme. The amendment aims to establish the social register as the primary tool for executing welfare initiatives.
This move follows the Federal Government’s approval of a $2.2 billion borrowing plan last week, reinforcing the administration’s commitment to addressing fiscal challenges and supporting national development.