President Bola Ahmed Tinubu has written the Senate, seeking approval for a new N1.767 trillion external borrowing plan.
Tinubu, in a correspondence read on the floor of the Red Chamber by Senate President Godswill Akpabio on Tuesday, maintained that his request was in line with the provisions of Sections 21(1) and 27(1) of the Debt Management Office (DMO) Establishment Act, 2003.
Senator Akpabio announced President Tinubu’s formal request for the Senate approval to implement the new external borrowing of $2.209 billion (₦1.767 trillion), as provided for in the 2024 Appropriation Act.
Checks revealed that the borrowing plan is to address a portion of the ₦9.17 trillion fiscal deficit in the 2024 budget.
Meanwhile, Minister of Finance and Coordinating Minister of the Economy, Wale Edun, while briefing journalists at the end of the FEC meeting last week, had revealed that the borrowing plan had already been approved by the Federal Executive Council (FEC).
According to him, the financing package will be raised through a combination of Eurobonds and Sukuk bonds, with approximately $1.7 billion expected to come from the Eurobond offer and $500 million from Sukuk financing.
He said the borrowing will take place within the 2024 fiscal year, with the final structure of the funding to be determined by market conditions and the recommendations of transaction advisers.
He said: “The first objective is to complete the federal government’s external borrowing program with the approval of the $2.2 billion financing package, which will include access to the international capital market through a combination of Eurobonds and Sukuk bonds—approximately $1.7 billion from the Eurobond offer and $500 million from Sukuk financing.
“The actual composition of the financing will be finalized once the National Assembly has considered and approved the borrowing plan. After the external borrowing approval is granted, the funds will be raised as soon as possible within the year.”
Also, Tribune Online reports that the President, in the correspondence addressed to Senate President Godswill Akpabio, submitted the 2025–2027 Medium-Term Fiscal Framework (MTF) and Fiscal Strategy Paper (FSP) to the Senate.
The MTEF/ FSP is a prelude to the formal presentation of the 2025 federal budget following approval by FEC at its November 10, 2024 meeting.
