The Senate, on Thursday, approved President Bola Tinubu’s loan request of $2.2 billion to partially finance the ₦9.7 trillion budget deficit for the 2024 fiscal year.

The approval followed the presentation of a report by the Chairman, Senate Committee on Local and Foreign Debts, Aliyu Wamakko, during plenary.

Presiding over the session, Deputy Senate President, Jibrin Barau, commended the committee for its swift action and thorough examination of the loan request.

In a letter read during the Senate and House of Representatives plenaries on Tuesday, Tinubu had explained that the loan was integral to his administration’s fiscal strategy for the coming year.


The presidential request for $2.2 billion, equivalent to ₦1.77 trillion, is already enshrined in the external borrowing plan for the 2024 fiscal year,” Senate President, Godswill Akpabio, stated while reading the letter.

He further directed the Senate Committee on Local and Foreign Debts to expedite its review of the request and present a report within 24 hours.

“The Senate Committee on Local and Foreign Loans should, therefore, give the request expeditious consideration and report back within 24 hours,” Akpabio emphasised.

Although the deadline elapsed on Wednesday, the committee submitted its findings during Thursday’s plenary, leading to the loan’s approval.

Wammako, in the report titled, “Implementation of New External Borrowing of N1,767,610,321,779.00 equivalent to $2.209bn in the 2024 Appropriation Act through the issuance of Eurobonds and other sources,” said the presidential request was necessary for approval.

According to him, the requested loan is planned for execution of ongoing projects and programmed in the 2024 Appropriation Act which are critical for growth and development.


Wammako added, “Based on availability and cost, to issue Eurobonds in the sum of USD1.70 billion or more, but not more than USD2,209,512,902,.22bn, approved as new external borrowing in the 2024 Act.

“Given the significant increase in the official exchange rate from USD1.00/800 to approximately 41,640, it is recommended that the exchange rate excess resulting from this adjustment be exclusively utilised for the implementation of capital projects in 2024.

“This will ensure that additional funds are directed to infrastructure and developmental projects that will contribute to the nation’s long-term growth and stability.”

After the report’s presentation, the Senate approved it at the Committee of Supply without any dissenting voice.

In his remarks after the approval, the Senate Deputy President commended the Wammako-led committee for a job well done.

Source: Punch Newspaper

Cc: Nlfpmod



https://www.youtube.com/watch?v=3NKlRdzQFTA?si=r9ly9fLz2tDL1qki

Good decision.

HgAkpobomeEr:
Good decision.

For you?

What of the trillions they said was saved from subsidy removal. Why the need to still borrow

Borrowing more money to splurge on frivolities and settling the boys.

The loan request is very much needed. We need to fund those critical infrastructures and ongoing projects.

Tinubu is a man on a mission.

tundegan:
The loan request is very much needed. We need to fund those critical infrastructures and ongoing projects.

Tinubu is a man on a mission.

Hmmm