In a move to address Nigeria's growing fiscal deficit, President Bola Tinubu has formally requested the National Assembly's approval for a $2.2 billion external borrowing plan embedded in the 2024 Appropriation Act.
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The appeal, delivered through a letter read by the Speaker of the House of Representatives, Tajudeen Abbas, during Tuesday's plenary session, outlines how the funds will support the government's ambitious spending plans.
The proposed loan is intended to bridge the N9.7 trillion budget shortfall for 2024. As part of the financing strategy, Tinubu's administration aims to secure a $1.7 billion Eurobond and $500 million through Sukuk financing instruments.
Additionally, the President submitted the 2025–2027 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) to the legislature.
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These documents, approved during the Federal Executive Council (FEC) meeting on November 10, 2024, will serve as a roadmap for drafting Nigeria's 2025 federal budget.
Tinubu also sent an amendment bill for the National Social Investment Programme (NSIP) Establishment Act, seeking to make the social register the cornerstone for implementing government welfare initiatives.
"The Senate is invited to note that as the 2025 budget of the Federal Government of Nigeria will be prepared based on the parameters and fiscal assumptions of the approved 2025-2027 MTF and FSP, it is imperative to seek the National Assembly’s expeditious legislative action in this submission."
The Federal Executive Council approved the external borrowing plan last Thursday, emphasizing its role in facilitating the effective execution of critical projects and programs under the 2024 budget.
All eyes are now on the National Assembly as lawmakers deliberate on this significant fiscal decision, which could shape Nigeria's economic trajectory in the coming years.