President Bola Tinubu has asked the House of Representatives to approve the implementation of a new external borrowing of $2.209 billion in the 2024 Appropriation Act.
The funds will be used to partly finance the budget deficit of $9.179 trillion in the 2024 budget, according to the Speaker of the House of Representatives, Tajudeen Abbas, who read the president’s letter during Tuesday’s plenary.
In addition to the request for external borrowing, the president also forwarded the “2025-2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper” and the National Social Investment Program Agency Establishment Amendment Bill 2024 for the consideration of the National Assembly.
Tinubu Seeks NASS Urgent Resolutions
Regarding the borrowing, the president sought the resolution of the National Assembly for its implementation, stating it is in accordance with the provisions of the Debt Management Office (DMO) Establishment Act 2023 and the approval of the Federal Executive Council.
“I write to request a resolution of the National Assembly to raise the sum of N1,767,610,321,779, equivalent to $2.209 billion, at the budget exchange rate of $1 to 800 Naira, as new external borrowing in the 2024 Appropriation Act to part-finance the budget deficit of $9.179 trillion in the 2024 budget,” the letter partly read.
- Regarding the 2025-2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper, Tinubu invited the House to note that the 2025 budget of the Federal Government will be prepared based on the parameters and fiscal assumptions of the approved 2025-2027 framework. He emphasized the importance of expeditious legislative action from the National Assembly on this matter.
- Furthermore, the president asked the lawmakers to consider and pass the National Social Investment Program Agency Establishment Amendment Bill 2024, which seeks to amend the National Social Investment Program Agency Act 2023.
- He explained that the purpose of the bill is to make the National Social Register the primary targeting tool for the implementation of the government’s social investment programs.
The president stressed that the bill will ensure that the federal government’s social welfare programs are data-driven and that implementation processes are transparent, targeted, dynamic, and effective in delivering social protection benefits to vulnerable Nigerians.
What You Should Know
Nairametrics previously reported that the Federal Executive Council (FEC) recently granted approval for a $2.2 billion financing program to support the Federal Government’s external borrowing plan.
- The decision was disclosed by Mr. Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, following a briefing after Wednesday’s FEC meeting in Abuja.
- Edun emphasized the significance of this approval as a critical part of the federal government’s borrowing strategy to meet financial needs and support its economic recovery efforts.
“We just had the Federal Executive Council meeting, and I am privileged to present two memoranda to the Federal Executive Council. The first one was to complete the borrowing program of the Federal Government in terms of external borrowing with the approval of a $2.2 billion financing program,” Edun said.
The proposed financing package will include access to the international capital market, specifically targeting the issuance of Eurobonds and Sukuk bonds.