The Nigerian Senate is expected to approve President Bola Tinubu’s $2.2 billion (approximately N1.77 trillion) loan request today (Wednesday).
The loan is part of the external borrowing plan aimed at financing the N28.7 trillion 2024 budget.
Meanwhile, this approval is considered crucial as the loan will help cover a significant portion of the N9.7 trillion budget deficit for the upcoming fiscal year.
However, the Senate’s approval process comes after Tinubu submitted the loan request to both the Senate and the House of Representatives.
Senate Committee Tasked with Fast-Tracking Loan Approval
During Tuesday’s plenary session, Senate President Godswill Akpabio directed the Senate Committee on Local and Foreign Debts to expedite the review of the loan request.
Akpabio emphasized that the loan was already included in the external borrowing plan for the 2024 fiscal year, making its approval a key step in the budget process.
“The request for $2.2 billion, equivalent to N1.77 trillion, is already enshrined in the external borrowing plan.
“Therefore, the Senate Committee on Local and Foreign Loans should give it expeditious consideration,” Akpabio said. He also instructed the committee to report back within 24 hours.”
Medium-Term Expenditure Framework Submitted for Review
In addition to the loan request, President Tinubu also submitted the Medium-Term Expenditure Framework (MTEF) and the Fiscal Strategy Paper (FSP) for the period of 2025 to 2027. These documents outline the government’s spending plan and fiscal policies for the next three years.
Senate President Akpabio has tasked the Senate Committee on Finance, National Planning, and Economic Affairs to review the MTEF/FSP and provide feedback within a week.
The consideration of these documents is seen as an important step toward shaping the country’s long-term economic strategy.
A Crucial Move for Nigeria’s Economic Stability
The approval of this loan is seen as vital for Nigeria’s fiscal stability as it addresses the nation’s budgetary shortfall.
The $2.2 billion loan, if approved, will be a key part of financing the government’s ambitious budget for 2024, which is aimed at stimulating growth and addressing economic challenges.
This swift legislative process shows the Senate’s urgency in addressing Nigeria’s fiscal issues as President Tinubu’s administration seeks to balance national expenditures with revenue generation.
