The Nigerian Senate has approved a $2.2 billion loan request from President Bola Tinubu, aimed at addressing the N9.1 trillion deficit in the 2024 budget.
The decision followed the presentation of a report by Aliyu Wamakko, chair of the committee on local and foreign debt.
The loan, equivalent to N1.7 trillion at an exchange rate of N800 to the dollar, will be raised through financial instruments such as Eurobonds and Sukuk, according to Wamakko.
Tinubu had formally submitted the loan request to the National Assembly on Tuesday, a move backed by the Federal Executive Council (FEC) as part of its plan to strengthen Nigeria’s finances and drive economic reforms.
In his presentation, Wale Edun, Minister of Finance and Coordinating Minister of the Economy, disclosed that the government expects to secure approximately $1.7 billion from the Eurobond market and $500 million through Sukuk financing.
Edun emphasized that the borrowing would occur within this fiscal year, with the ultimate funding structure influenced by market conditions and expert advice from transaction advisers.
The 2025 fiscal year total expenditure is projected at N47.9 trillion.
