Nigerian Senate on Thursday approved President Bola Tinubu’s request for a $2.2 billion loan to address a funding shortfall in the 2024 budget.

The approved amount, equivalent to approximately ₦1.7 trillion at an exchange rate of ₦800 per dollar, will contribute to bridging the ₦9.1 trillion deficit in the fiscal year’s budget.

The Senate’s decision followed the submission of a report by Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debt.

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The report explained the importance of the loan in ensuring the successful implementation of the 2024 budget and addressing critical funding gaps.

The approved loan is expected to be sourced from foreign creditors, with a focus on minimizing borrowing costs while adhering to Nigeria’s debt sustainability framework.

The President’s request was contained in a letter read by the Senate President, Godswill Akpabio during the plenary on Tuesday.

In the letter, Tinubu explained that the external loan would be part of the funds that will be used to finance the N28.7 trillion 2024 Appropriation.

President Tinubu noted that his request was in accordance with the provisions of Sections 21 (1) and 27 (1) of the Debt Management Office and the approval of the Federal Executive Council (FEC).

This development is part of the government’s ongoing efforts to stabilize the economy and maintain public financial obligations amidst revenue challenges.