President Tinubu asks Senate to approve $8.69 billion, €100 million external loan

President Bola Tinubu, on November 28, called upon the Senate to deliberate and grant approval for his request to secure a loan amounting to $8,699,168,559 and €100 million.

This forms part of the 2022 – 2024 external borrowing plan envisioned by the federal government. 

Senate President Godswill Akpabio read Tinubu’s letter of request during the plenary session. 

The president highlighted that both the World Bank and the African Development Bank have expressed their willingness to contribute $1 billion and N1.5 billion, respectively, in support of the loan. 

What the President is Saying

Tinubu’s letter titled: “2022-2024 external borrowing plan” was delivered to the Senate on Tuesday. The letter contained the following: 

• “I write in respect of the above subject and to submit the attached Federal Government 2022-2024 external borrowing plan for consideration and early approval of the National Assembly to ensure prompt implementation of the projects.
• “The Senate may wish to note that the past administration approved a 2022-2024 borrowing plan by the Federal Executive Council (FEC) held on May 15, 2023.
• “The project cuts across all sectors, with specific emphasis on infrastructure, agriculture, health, water supply, roads, security, and employment generation as well as financial management reforms.
• “Consequently, the required approval is in the sum of $8,699,168,559 and €100 million.
• “I would like to underscore the fact that the projects and programmes in the borrowing plan were selected based on economic evaluations as well as the expected contribution to the social economic development of the country, including employment generation, and skills acquisition.
• “Given the nature of these facilities, and the need to return the country to normalcy, it has become necessary for the Senate to consider and approve the 2022- 2024 external abridged borrowing plan to enable the government to deliver its responsibility to Nigerians.”

Senate President Akpabio thereafter referred the executive request to the Senate Committee on Foreign and Local Debts for further legislative work and to report at plenary in one week. 

Backstory

Earlier on Monday, the Federal Government approved the sum of N27.5 trillion expenditure for the 2024 Appropriation Bill.  

The Minister of Budget and National Planning, Atiku Bagudu, disclosed this to State House correspondents on Monday after the weekly FEC meeting.  

He said:  

• “The federal executive council considered the 2024 Appropriation bill. The MTEF was earlier approved by the National Assembly. It has an exchange rate of N700 to a dollar and a crude oil benchmark of $73.
• “To improve revenue, the council further reviewed the MTEF, with an exchange rate of N750 to a dollar, and a crude oil benchmark of $77. This will significantly improve revenue.”

The President will present the 2024 budget to the National Assembly on Wednesday, 29th of November for their review and approval.