President Bola Tinubu has formally requested the National Assembly’s approval for a new external borrowing of N1.76 trillion, equivalent to $2.209 billion at the official budget exchange rate of USD1/N800.

In a letter addressed to the Senate, Tinubu emphasized that the borrowing aligns with the provisions of Sections 21(1) and 27(1) of the Debt Management Office (DMO) (Establishment, Etc.) Act of 2003.

This loan is part of the financing provisions outlined in the 2024 Appropriation Act and the proposal has also received the endorsement of the Federal Executive Council (FEC), ensuring compliance with Nigeria’s financial regulations.

The funds are intended to bridge the deficit in the 2024 budget.

READ ALSO:

Also, it aims to finance critical infrastructure projects, economic reforms, and other developmental initiatives.

The President noted the importance of securing the funds to meet the government’s fiscal targets and accelerate the delivery of its Renewed Hope Agenda.

The request has now been referred to the Senate Committee on Finance for detailed review and deliberation.

The committee is expected to evaluate the borrowing’s feasibility, economic impact, and repayment plan before making recommendations to the Senate for approval.

If approved, this borrowing will add to Nigeria’s growing external debt profile, which has been a subject of concern among economic analysts and policymakers.

However, the government argues that the loan is necessary to fund capital projects and stimulate economic growth.