President Bola Ahmed Tinubu has sought the National Assembly’s approval to borrow N1,767,610,321,779.
If granted, the loan will be used to partly finance the N9.7 trillion deficit in the N35.1 trillion 2024 Appropriation Act.
The President explained in letters to Senate President Godswill Akpabio and House of Representatives Speaker Tajudeen Abbas that the request was in line with Sections 21(1) and 27(1) of the Debt Management Office (DMO) (Establishment, Etc.) Act, 2003, and the approval of the Federal Executive Council (FEC).
The letters dated November 15 were read by Akpabio and Tajudeen on the floors of both chambers yesterday.
The President’s letter was read by the two leaders at the resumption of plenary after a two-week break.
The President said: “I write to request for a resolution of the National Assembly (NASS) to raise the sum of N1,767,610,321,779.00 (the equivalent of $2,209,512,902.22 at the budget exchange rate of $1.00/N800) provided as new external borrowing in the 2024 Appropriation Act to part finance the budget deficit of N9.179 trillion.
“You may wish to recall that the 2024 Appropriation Act approved the sum of N7,828,529,477,860.00 as new borrowings to part-finance the 2024 budget deficit of N9.179 trillion.
‘’The total new borrowings of N7.828 trillion was further subdivided into new domestic borrowing of N6.061 trillion and new external borrowing of N1.767 trillion. The latter is the subject of this request.”
Tinubu said the funding plan was to raise the new external borrowing of $2.21 billion from “a combination of commercial sources: Issuance of Eurobonds, debut Sovereign Sukuk in the International Capital Market (ICM) and bridge finance/syndicated loans.’’
On the Issuance of Eurobonds, the President said Nigeria could raise all or part of the new external borrowing of $2.21 billion through the issuance of bonds in the ICM.
“Nigeria has been a regular issuer in the ICM and has raised $16.92 billion out of which $15.12 billion is outstanding. The ICM is now open to countries similar to Nigeria, and so far, Cote d’Ivoire, Benin, Kenya, and Cameroon issued Eurobonds in the ICM in 2024,” he said.
