In a recent session, the Senate granted approval to the request made by the President for a $2.2 billion loan to help cover part of the ₦9.7 trillion budget deficit for the 2024 fiscal year. The decision came after the Chairman of the Senate Committee on Local and Foreign Debts, Aliyu Wamakko, presented a detailed report during the session.
During the Senate and House of Representatives plenaries, a letter from the President was read, explaining the significance of the loan in the administration’s fiscal strategy for the upcoming year. The Senate President, in acknowledging this, highlighted the necessity of the loan which is already included in the external borrowing plan for 2024.
Following the directive by the Senate President, the Committee on Local and Foreign Debts expedited the review process and presented its findings within the stipulated timeframe. The report emphasized the importance of the loan in executing critical ongoing projects outlined in the 2024 Appropriation Act for growth and development.
The committee recommended the approval of the new external borrowing as outlined in the report, emphasizing the need to raise funds from various sources such as Eurobonds, debt sovereign Sukuk, and bridge/syndicated loans based on market conditions. The approval of the loan was met without dissent during the Committee of Supply.
In conclusion, the Senate Deputy President commended the committee for its diligent work in handling the loan request.