Senate Set to Approve Tinubu’s $2.2bn Loan Request, Reviews Key Budget Frameworks

The Senate is poised to approve President Bola Tinubu’s $2.2 billion (approximately N1.77 trillion) loan request on Wednesday, marking a significant step in financing the 2024 federal budget. The loan is part of the external borrowing plan outlined to address the N9.7 trillion budget deficit in the N28.7 trillion fiscal plan for 2024.

In letters addressed to both chambers of the National Assembly on Tuesday, President Tinubu explained that the proposed loan would partially finance the deficit, emphasizing its inclusion in the external borrowing plan.

Following the submission, Senate President Godswill Akpabio directed the Senate Committee on Local and Foreign Debts to expedite consideration of the request and provide feedback within 24 hours. “The Presidential request for $2.2 billion, equivalent to N1.77 trillion, is already enshrined in the external borrowing plan for the 2024 fiscal year,” Akpabio stated.

In addition to the loan request, President Tinubu submitted the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for 2025–2027. The documents outline key fiscal assumptions, including:
– An oil price benchmark of $75 per barrel.
– Daily oil production of 2.06 million barrels.
– An exchange rate of N1,400 to $1.
– A targeted GDP growth rate of 6.4%.

These parameters will form the basis for the proposed N47.9 trillion budget for 2025. Akpabio tasked the Senate Committee on Finance, National Planning, and Economic Affairs to review the documents and submit a report within one week.

In a related development, Tinubu also forwarded the Social Investment Programme Amendment Bill to the National Assembly. The proposed amendment aims to enhance transparency and efficiency in implementing social welfare initiatives.

The bill seeks to designate the National Investment Register as the primary tool for identifying beneficiaries of social investment programs, ensuring a data-driven approach to targeting Nigeria’s most vulnerable citizens.

“The amendment will make our social and welfare programs more transparent, efficient, and impactful in addressing the needs of vulnerable Nigerians,” Tinubu stated, emphasizing the urgency of its passage.

The Senate has referred the bill to relevant committees for review, with deliberations expected in upcoming sessions.

These developments reflect the Tinubu administration’s focus on leveraging loans, fiscal planning, and technology-driven frameworks to address economic challenges, combat poverty, and foster growth. If approved, the measures are expected to bolster the implementation of the government’s broader economic and social welfare agenda.