The Nigerian Senate has given the green light to President Bola Tinubu’s request for a $2.2 billion loan, marking a crucial step in addressing the country’s financial challenges. This decision came after the Senate reviewed a report presented by Senator Aliyu Wamakko, who chairs the Committee on Local and Foreign Debt.
The approved sum, equivalent to around N1.7 trillion at the current exchange rate of N800 to a dollar, is slated to cover the N9.1 trillion deficit in the 2024 budget. According to Wamakko’s report, the funds will be sourced through international financial instruments, specifically Eurobonds and Sukuk, offering a diversified approach to raising the necessary capital.
President Tinubu had initially sent the loan request to the National Assembly earlier in the week, emphasizing its importance in stabilizing Nigeria's economy amid ongoing reforms. The move aligns with the Federal Executive Council’s broader strategy to strengthen the nation’s finances. The loan breakdown, as outlined by Honorable Minister of Finance Mr. Wale Edun, includes a target of $1.7 billion from the Eurobond market and $500 million from Sukuk bonds.
This borrowing plan is part of a broader economic effort to stabilize Nigeria’s finances, address the budget shortfall, and support the ambitious economic reforms introduced by President Tinubu’s administration.
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