The Nigerian Senate is expected to approve President Bola Tinubu’s $2.2 billion loan request today, Wednesday, November 20, as part of the government’s strategy to address the N9.7 trillion deficit in the 2024 fiscal year budget.
The loan is a crucial component of the external borrowing plan tied to the N28.7 trillion budget proposal for the upcoming year.
President Tinubu formally submitted the loan request to the Senate and House of Representatives in separate letters read during the plenary sessions on Tuesday, November 19.
The funds will contribute to financing a portion of the budget deficit, which the government has outlined as a priority for the fiscal year 2024.
Senate President Godswill Akpabio promptly tasked the Senate Committee on Local and Foreign Debts to review the loan request and submit a report within 24 hours.
Akpabio emphasised the need for swift approval, stating, “The Presidential request for $2.2 billion, equivalent to N1.77 trillion, is already enshrined in the external borrowing plan for the 2024 fiscal year.”
The Senate is expected to consider the request with urgency, paving the way for approval of the much-needed loan.
The loan is part of a broader strategy to address Nigeria’s growing fiscal deficit, as the government aims to balance its budget and stimulate economic growth in the face of rising expenditures.
In addition to the loan request, President Tinubu also submitted the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for the period 2025–2027.
The MTEF/FSP documents, which include key parameters for the country’s future economic planning, will be examined by the Senate Committee on Finance, National Planning, and Economic Affairs. A report on these documents is expected within one week.
The proposed framework includes a $75 oil price benchmark per barrel, a daily oil production target of 2.06 million barrels, and an exchange rate of N1,400 to $1.
The government is also targeting a GDP growth rate of 6.4 percent, which forms the foundation for the proposed N47.9 trillion budget for 2025.
In related news, President Tinubu forwarded the Social Investment Programme Amendment Bill to the National Assembly. The bill aims to strengthen the framework for social welfare programs in Nigeria, promoting greater transparency and efficiency in the delivery of social protection to vulnerable citizens.
The proposed amendment seeks to establish the National Investment Register as the primary tool for targeting beneficiaries of these welfare programs.
“The amendment will make our social and welfare programs more transparent, efficient, and impactful in addressing the needs of vulnerable Nigerians,” President Tinubu said in his submission.
If approved, the bill is expected to enhance the effectiveness of the country’s social welfare initiatives, helping to alleviate poverty and reduce inequality across the nation.
The Senate has referred the bill to the relevant committees for further review, with deliberations expected in subsequent sessions.
This series of legislative moves highlights President Tinubu’s administration’s focus on fiscal responsibility, social welfare reform, and economic growth as it moves to address the country’s financial challenges in the coming years.
