By Patrick Idowu
The Senate has approved a $2.2 billion loan request from President Bola Tinubu, which will be used to address the N9.1 trillion deficit in the 2024 budget.
The approval came after the Senate considered a report presented by Senator Aliyu Wamakko, chair of the Committee on Local and Foreign Debt.
The loan, approximately N1.7 trillion at an exchange rate of N800 to the dollar, will be raised through instruments such as Eurobonds and Sukuk.
Tinubu’s request was formally submitted to the National Assembly on Tuesday.
The Federal Executive Council (FEC), had outlined the $2.2 billion borrowing plan to bolster the country’s finances and support ongoing economic reforms.
Finance Minister Wale Edun, who also serves as the Coordinating Minister of the Economy, stated that about $1.7 billion will be sourced from the Eurobond offer, with an additional $500 million coming from Sukuk financing.
He further noted that the borrowing will take place within this fiscal year, and the final funding arrangements will depend on market conditions and the guidance of transaction advisers.
