Senate approves Tinubu’s new external borrowing plan of $2.2bn

Senate on Thursday at plenary approved the new external borrowing plan request of $2.2billion dollars presented for consideration by President Bola Tinubu.

The approval followed adoption of report of Senate Committee on Local and Foreign Debts.

The report was presented by the Chairman of the Committee Sen. Aliyu Wammako (APC -Sokoto).

President Bola Tinubu had on Tuesday, Nov 19, in separate letters to both chambers of the National Assembly, requested for approval of $2.2 billion dollars external borrowing plan to part fund the N9.7trillion deficit in the 2024 budget .

Senate upon receipt of the request, mandated its committee on local and foreign debts to expeditiously ensure further legislative inputs on the request and report back within 24 hours.

Presenting the committee ‘s report, Wammako said the presidential request was very necessary for approval.

He said the loan request would be utilised for execution of ongoing projects and programmes in the 2024 appropriation act , saying that the projects were critical for national growth and development.

”It will contribute to the implementation of the debt management strategy, which seeks to reduce the cost of borrowing.

”It will lengthen maturity of the public debt stock, free – up space in the domestic market for other borrowers and help increase Nigeria’s external reserves .”

Wammako said Nigeria could raise all or part of the 2.2billion dollars through the issuance of Eurobonds in the International Capital Market ( ICM) .

Wammako thereafter recommended as follows:

”That the Senate do approve the implementation of the new external borrowing of 2.2 billion dollars at the budget exchange rate of one dollars to N800 in the 2024 appropriation act and that the amount should be raised from one or more sources.

”Namely, issuance of eurobonds in the ICM, issuance of debut sovereign Sukuk in the ICM, and bridge, syndicated loans, subject to market conditions.”

The report was thereafter unanimously approved via an affirmative voice vote.

In his remarks after the approval, Deputy President of the Senate, Senator Jibrin Barau (APC-Kano), who presided plenary commended the Wammako led committee for a job well done.