Just two days after receiving a request from President Bola Tinubu for a $2.209billion (N1.767trillion) borrowing plan, the Senate, on Thursday, approved the request.
LEADERSHIP reports that President Tinubu had on Tuesday this week through separate letters to both chambers of the National Assembly, requested for approval of N1.767trillion loan to partially fund the N9.7trillion deficit in the N28.7trillion 2024 budget.
Recall that the Senate, upon receipt of the presidential correspondence, mandated its Committee on Local and Foreign Debts to expeditiously work on the request and report back to plenary within 24 hours.
Accordingly, the chairman of the Senate Committe, Senator Aliyu Wamakko (APC, Sokoto North), presented the committee’s report at plenary on Thursday.
Senator Wamakko in the report titled “Implementation of New External Borrowing of N1,767,610,321,779.00 equivalent to $2.209billion in the 2024 Appropriation Act through the issuance of Eurobonds and other Sources”, said the presidential request was very necessary for approval.
According to him, the requested loan was planned for execution of ongoing projects and programmed in the 2024 Appropriation Act, which are critical for growth and development.
“It will contribute to the implementation of the Debt Management Strategy which seeks to reduce the cost of borrowing, lengthen the maturity of the public debt stock, free-up space in the domestic market for other borrowers and help increase Nigeria’s External Reserves,” the lawmaker explained.
He added that Nigeria could raise all or part of the New External Borrowing of $2.21billion through the issuance of Eurobonds in the International Capital Market (ICM).
The Senate Committee, therefore, recommended: “That the Senate do approve the implementation of the New External Borrowing of One Trillion, Seven Hundred and SixtySeven Billion, Six Hundred and Ten Million, Three Hundred Twenty-One Thousand, Seven Hundred and Seventy-Nine Naira (41,767, 610,321,779.00) (equivalent of USD2,209,512,902.22b) at the Budget Exchange rate of USD1.00/800 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, & Bridge/ syndicated loans, subject to market conditions.
“Based on availability and cost, to issue Eurobonds in the sum of USD1.70 billion or more, but not more than USD2,209,512,902,.22b, approved as New External Borrowing in the 2024 Act.
“Given the significant increase in the official exchange rate from USD1.00/800 to approximately 41,640, it is recommended that the exchange rate excess resulting from this adjustment be exclusively utilized for implementation of capital projects in 2024.
“This will ensure that additional funds are directed to infrastructure & developmental projects that will contribute to the Nation’s long term growth and stability.”
Meanwhile, after the presentation of the committee’s report, the Senate expeditiously and unanimously approved the recommendations therein at its Committee of Supply.
In his remarks after the appro, the Deputy President of the Senate, Senator Jibrin Barau, who presided over the Committee of Supply session, commended the Senator Wammako-led legislative committee for a job well done.
