Nigeria: Senate approves Tinubu’s $2.2 billion loan request

The Senate said the loan would strengthen the country’s foreign exchange reserves.

The Senate on Thursday granted President Bola Tinubu approval for a $2.209 billion foreign loan.

The loan was approved after considering the report of the Senate Committee on Local and External Debt presented by its Chairman Aliyu Wamakko at the plenary session.

The loan equivalent to N1.767 trillion will be part of the funds that will be used to finance the 2024 budget of N28.7 trillion as stipulated in the Appropriation Act.

It will be obtained from the country’s Eurobonds in international capital markets and proceeds from the country’s financial regulations.

A Eurobond is a debt instrument denominated in a currency other than the domestic currency of the country or market in which it is issued. Eurobonds are important because they help countries or organizations raise capital while being able to issue them in another currency.

President Tinubu asked approval on Tuesday in accordance with the provisions of Sections 21(1) and 27(1) of the Debt Management Authority and the approval of the Federal Executive Council.

Presenting the report, Mr. Wamakko (armored personnel carrierSokoto North) said if the request for external loans is approved, it will strengthen the country’s foreign exchange reserves.

He said members of the National Assembly would work with the Federal Ministry of Finance to ensure that the fund was properly utilized when it was finally received.

Therefore, he recommended approval of the President’s request.

The request was not discussed by senators until Senate Deputy President Barau Jibrin, who chaired the plenary session, approved it.

Mr Jibrin explained that the President’s request was simple and there was no need for extensive debate.

He also said that the request for external loans is in the country’s interests.

Jibrin then thanked the committee members for their recommendations.