By Ologeh Joseph Chibu
The Nigerian Government is set to receive another $2.2 billion (approximately N1.77 trillion) external loan.
The Senate is set to approve the request brought forward by the President.
The loan forms part of the external borrowing plan to fund the N28.7 trillion 2024 budget.
In letters read at Tuesday’s Senate and House of Representatives plenary sessions, President Tinubu explained that the loan would help bridge the N9.7 trillion budget deficit for the 2024 fiscal year. Following the letter’s presentation, Senate President Godswill Akpabio directed the Senate Committee on Local and Foreign Debts to review the request and submit its findings within 24 hours.
“The Presidential request for $2.2bn, equivalent to N1.77tn, is already enshrined in the external borrowing plan for the 2024 fiscal year.”
“The Senate Committee on Local and Foreign Loans should therefore give the request expeditious consideration and report back within 24 hours,” Akpabio emphasized.
Medium-Term Expenditure Framework Submitted
In addition to the loan request, President Tinubu submitted the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for 2025–2027. Key economic assumptions in the framework include:
Oil price benchmark: $75 per barrel
Daily oil production: 2.06 million barrels
Exchange rate: N1,400 to $1
GDP growth rate: 6.4%
These parameters will guide the formulation of the proposed N47.9 trillion 2025 budget. The Senate Committee on Finance, National Planning, and Economic Affairs has been tasked with reviewing the MTEF/FSP and reporting back within a week.
Proposed Amendments to Social Investment Programme
In a related development, President Tinubu also forwarded the Social Investment Programme Amendment Bill to the National Assembly. This bill seeks to enhance the framework for implementing social welfare initiatives, emphasizing transparency and efficiency.
A key provision of the amendment is the designation of the National Investment Register as the primary tool for targeting beneficiaries. According to Tinubu, this data-driven approach will ensure that welfare programs effectively reach Nigeria’s most vulnerable citizens.
“The amendment will make our social welfare programs more transparent, efficient, and impactful in addressing the needs of vulnerable Nigerians,” Tinubu stated, urging the Senate to expedite its consideration.
The bill has been referred to relevant Senate committees for review, with deliberations expected in upcoming sessions.
Strengthening Governance
These moves highlight the Tinubu administration’s commitment to addressing Nigeria’s fiscal challenges while leveraging technology and data to optimize the impact of social welfare initiatives. If approved, the proposed measures aim to combat poverty and inequality and strengthen the nation’s economic framework.