The two chambers of the National Assembly, yesterday, approved President Bola Tinubu’s request for a fresh $2.209 billion external borrowing to fund the deficit in the 2024 budget.
The approval came 48 hours after President Tinubu wrote to the chambers of the National Assembly requesting the approval of the lawmakers for a new foreign loan, which according to him, was already captured in the 2024 Appropriation Act.
The senate at plenary received and considered the report of its Committee on Local and Foreign Debts, which was mandated to work on the President’s request.
The approval followed adoption of a report of the Senate Committee on Local and Foreign Debts.
The report was presented by the Chairman of the Committee, Sen. Aliyu Wammako (APC -Sokoto).
President Bola Tinubu had on Tuesday, November 19, in separate letters to both chambers of the National Assembly, requested for approval of a $2.2 billion dollars external borrowing plan to partly fund the N9.7 trillion deficit in the 2024 budget .
The Senate, upon receipt of the request, mandated its committee on local and foreign debts to expeditiously ensure further legislative inputs on the request and report back within 24 hours.
Presenting the committee’s report, Wammako said the presidential request was very necessary for approval.
He said the loan request would be utilised for the execution of ongoing projects and programmes in the 2024 appropriation act, saying that the projects were critical for national growth and development.
“It will contribute to the implementation of the debt management strategy, which seeks to reduce the cost of borrowing. It will lengthen maturity of the public debt stock, free-up space in the domestic market for other borrowers and help increase Nigeria’s external reserves.”
Wammako said Nigeria could raise all or part of the $2.2 billion through the issuance of Eurobonds in the International Capital Market (ICM). The report was, thereafter, unanimously approved via an affirmative voice vote.
In his remarks after the approval, Deputy Senate President, Jibrin Barau (APC-Kano), who presided over the plenary, commended the Wammako-led committee for a job well done.
After the presentation of the report, it was approved by senators, without dissent, at the Committee on Supply.
Similarly, the House of Representatives, also considered and approved the loan request, at the Committee on Supply, following the presentation of the report by the House Committee on Aids, Loans and Debt Management, at plenary.
Credit: The Sun