The Nigerian Senate is poised to approve President Bola Tinubu’s $2.2 billion (₦1.77 trillion) loan request today (Wednesday). This loan is a critical component of the external borrowing plan to address the ₦9.7 trillion budget deficit in the ₦28.7 trillion 2024 budget.
Loan Request Details
The loan proposal was submitted in letters to the Senate and House of Representatives during Tuesday’s plenary sessions. Senate President Godswill Akpabio tasked the Committee on Local and Foreign Debts with expeditious consideration, expecting a report within 24 hours.
“The Presidential request for $2.2 billion is already enshrined in the external borrowing plan for the 2024 fiscal year,” Akpabio stated.
Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP)
President Tinubu also submitted the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for 2025–2027. Key parameters include:
- Oil price benchmark: $75 per barrel
- Daily oil production: 2.06 million barrels
- Exchange rate: ₦1,400 to $1
- GDP growth rate: 6.4%
The MTEF/FSP serves as the foundation for the proposed ₦47.9 trillion 2025 budget. The Senate Committee on Finance, National Planning, and Economic Affairs has one week to review and report on the documents.
Social Investment Programme Amendment Bill
Additionally, President Tinubu forwarded the Social Investment Programme Amendment Bill to the National Assembly, aiming to enhance the transparency and efficiency of welfare initiatives.
Key proposals in the amendment include:
- Designating the National Investment Register as the primary tool for identifying beneficiaries.
- Making welfare programs more data-driven to better serve Nigeria’s most vulnerable citizens.
- Improving the management of social investment initiatives to combat poverty and inequality effectively.
Tinubu emphasized that the bill, submitted under Section 58(2) of the 1999 Constitution (as amended), requires urgent attention.
“This amendment will ensure our social welfare programs are more transparent, efficient, and impactful,” Tinubu noted.
The Senate referred the bill to relevant committees for review, with deliberations scheduled for upcoming sessions.
The approval of the $2.2 billion loan request, coupled with the submission of the MTEF/FSP and the Social Investment Programme Amendment Bill, highlights the Tinubu administration’s efforts to address Nigeria’s fiscal challenges. These initiatives aim to strengthen economic stability, enhance social welfare, and drive sustainable development.
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