President Bola Tinubu’s loan request for $2.2 billion has been granted by both the Senate and the House of Representatives.
On Thursday, both chambers of the national assembly accepted the loan request after considering reports from the local and international debt committees.
The cash, equivalent to N1.7 trillion at an exchange rate of N800 to the dollar, will be used to fund the N9.1 trillion deficit in the 2024 budget.
While presenting his report to the Senate, Aliyu Wamakko, chair of the committee on local and foreign loans, stated that the cash would be raised through instruments such as Eurobonds and Sukuk.
Tinubu had requested the national assembly to approve the loan request on Tuesday.
The Federal Executive Council (FEC) has authorised a $2.2 billion foreign borrowing plan to “strengthen the country’s finances and support economic reforms”.
Wale Edun, Minister of Finance and Coordinating Minister of the Economy, stated that the Eurobond offer is expected to generate around $1.7 billion and the Sukuk financing will generate $500 million.
Edun stated that the borrowing would take place this fiscal year, with the eventual funding arrangement determined by market conditions and the transaction adviser’s counsel.
The federal government has projected a total expenditure of N47.9 trillion for the fiscal year 2025.