VANGUARD
President Bola Tinubu has written to the National Assembly seeking approval for a new external borrowing of $2.209 billion (N1.767 trillion), as provided for in the 2024 Appropriation Act, with experts warning against plunging the country into more debt.
According to the President, the request is part of Nigeria’s budgetary financing plan, which aims to address a portion of the N9.17 trillion fiscal deficit in the 2024 budget.
President Tinubu has also forwarded to the Senate the 2025–2027 Medium Term Expenditure Framework and Fiscal Strategy Paper (FSP), MTEF/ FSP 2025- 2027 approved by the Federal Executive Council, FEC, on November 10, 2024 to parliament.
The MTEF/FSP request which sought expeditious passage, was referred to the Senate Committees on Finance and that of National and Economic Planning to report back as soon as practicable.
The President’s letter, addressed to the President of the Senate, Senator Godswill Akpabio, and the Speaker, House of Representatives, Tajudeen Abbas, during plenary, said the request is in line with provisions of Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003.The borrowing plan had already been approved by FEC.
The letter also provided detailed terms and conditions for the issuance of Eurobonds in the international capital market to raise the required sum.
President Tinubu authorized the Minister of Finance and Coordinating Minister of the Economy, alongside the DMO, to take all necessary steps to execute the plan upon National Assembly approval.
President Tinubu explained that the purpose of the borrowing would be to finance the 2024 budget deficit as part of Nigeria’s broader fiscal strategy, adding that the money would be raised through Eurobonds or other external borrowing instruments.
The President appealed for swift legislative action, emphasizing the importance of timely resolution to implement the borrowing plan.
