Senate approves President Tinubu’s ₦1.77trn loan request
The Senate has officially approved President Bola Tinubu’s request for a ₦1.77 trillion ($2.2 billion) loan following a favorable voice vote.
The session was chaired by Deputy Senate President Barau Jibrin, who presided over the meeting where the Senate Committee on Local and Foreign Debts, led by Senator Wammako Magatarkada (APC, Sokoto North), presented their comprehensive report.
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This loan request, submitted by President Tinubu earlier this week, is part of a broader strategy to address a projected ₦9.7 trillion budget deficit for the 2024 fiscal year.
In his communication to the National Assembly, the President sought approval for this new external borrowing under the 2024 Appropriation Act.
The loan is anticipated to increase the Federal Government’s debt servicing obligations. Recent data from the Central Bank of Nigeria revealed that it cost the government $3.58 billion to service foreign debts in the first nine months of 2024, marking a substantial 39.77 percent rise from the $2.56 billion incurred during the same period in 2023.
The report also indicated that the peak monthly debt servicing payment in 2024 occurred in May, reaching $854.37 million, compared to the highest payment of $641.70 million in July 2023. This trend underscores the growing pressures related to Nigeria’s foreign debt obligations.
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