President Bola Tinubu has formally written to both chambers of the National Assembly, requesting approval for a fresh external borrowing of $2.209 billion (₦1.77 trillion), as outlined in Nigeria’s 2024 Appropriation Act.
This borrowing is part of the government’s broader fiscal strategy to address a portion of the ₦9.17 trillion fiscal deficit in the 2024 budget.
In his letter, addressed to Senate President Godswill Akpabio and House of Representatives Speaker Tajudeen Abbas, President Tinubu explained that the borrowing was necessary to finance the budget deficit and is in line with Nigeria’s budgetary financing plan.
He emphasised that the borrowing plan had already been approved by the Federal Executive Council (FEC).
The request, made under Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003, outlines the issuance of Eurobonds or other external debt instruments in the international capital markets to raise the required funds.
Detailed terms and conditions for the issuance of the Eurobonds were provided in the letter to guide the Senate’s review process.
The President also forwarded the 2025–2027 Mid-Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) to the Senate for approval. This document, approved by FEC on November 10, 2024, outlines the government’s medium-term financial strategy.
The MTEF/FSP request was referred to the Senate Committees on Finance and National and Economic Planning, chaired by Senator Sani Musa, for expeditious review and report back to the Senate.
In his appeal for swift action, President Tinubu stressed the urgency of resolving the matter to enable the timely implementation of the borrowing plan and the 2024 budget.
He also authorized the Honourable Minister of Finance and Coordinating Minister of the Economy, alongside the Debt Management Office (DMO), to take all necessary steps to execute the borrowing plan once the National Assembly grants approval.
In response to the President’s request, Senate President Akpabio referred the matter to the Committee on Local and Foreign Debts, led by Senator Aliyu Wamako, with instructions to report back within 24 hours.
The National Assembly’s approval is crucial to securing the funds needed to finance the 2024 fiscal deficit and ensure the smooth execution of the government’s budgetary plans for the year.
