President Bola Ahmed Tinubu has requested the National Assembly for an approval of a N1.767 trillion loan already captured in the external borrowing plan for the N28.7trillion 2024 Budget implementation.
President Tinubu, who made the request in separate letters read in both the Senate and House of Representatives during plenary, Tuesday, said if approved, the loan would be used to part-finance the budget deficit of N9.7 trillion for the 2024 budget.
The letter was dated 15th November, 2024 and read to members at plenary of both chambers.
After reading the letter, Senate President Godswill Akpabio, mandated the Senate Committee on Local and Foreign Debts to work on the request and report back within 24 hours.
“The Presidential request for $2.2 billion, equivalent of N1.767trillion loan is already enshrined in the external borrowing plan for the 2024 fiscal year.
“The Senate Committee on Local and Foreign Debts should, therefore, give the request expeditious consideration and report back within 24 hours,” Akpabio said.
…On MTEF, FSP
Also, President Tinubu forwarded the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for 2025-2027 to both arms of the National Assembly.
In giving the request expeditious consideration, Senator Akpabio, after reading the letter, mandated the Senate Committee on Finance, National Planning and Economic Affairs to consider it at committee level and report back in one week.
Similar letter was also read on the floor of the House by Speaker Tajudeen Abass.
The President said: “In accordance with the provisions of Sections 21(1) and 27(1) of the Debt Management Office (DMO) (Establishment, Etc.) Act, 2003, and the approval of the Federal Executive Council, I write to request for a Resolution of the National Assembly (NASS) to raise the sum of N1,767,610,321,779.00 (equivalent of USD2,209,512,902.22 at the Budget Exchange Rate of USD1.00/N800) provided as New External Borrowing in the 2024 Appropriation Act to part finance the budget deficit of N9.179 trillion.”
He further explained that “the 2024 Appropriation Act approved the sum of N7, 828,529,477,860.00 as New Borrowings to part-finance the 2024 budget deficit of N9.179 trillion. The total New Borrowings of N7.828 trillion was further subdivided into New Domestic Borrowing of N6.061 trillion and New External Borrowing of N1.767 trillion (Table 1). The latter is the subject of this request.”
On the funding plan, he said the government was “to raise the New External Borrowing of USD2.21 billion from a combination of commercial sources: Issuance of Eurobonds, Issuance of debut Sovereign Sukuk in the International Capital Market (ICM) and Bridge Finance/Syndicated Loans,” which according to him, would be pursued simultaneously.
“The funds are needed to give more impetus to the ongoing implementation of the projects and programmes in the 2024 Appropriation Act, which were designed to stabilize the economy and put it on the path of sustainable growth and development. The key projects to which the proceeds will be deployed from the priority sectors of the economy, such as power, transport, agriculture, defence and security.”
Also in his letter conveying the 2025-2027 MTEF&FSP, the President said it was approved during the Federal Executive Council (FEC) meeting of 10th November, 2024, adding that “the 2025 budget of the Federal Government will be prepared based on the parameters and fiscal assumptions of the approved 2025-2027 MTEF&FSP, it is imperative to seek National Assembly’s expeditious legislative action on this submission.”
Key parameters in the 2025-2027 MTEF / FSP documents needed for consideration and approval of the proposed N47.9trillion 2025 budget are ÷ $75 oil price benchmark per barrel, Daily Oil Production of 2.06 million barrels, Exchange Rate of N1, 400 to $1 and targeted GDP Growth rate of 6.4%.
… Amendment bill on Social investment
In yet another letter, President Tinubu sought approval of the National Assembly for the Social Investment Programme Amendment Bill.
The proposed amendment aims to strengthen the framework for implementing the government’s social welfare programmes, ensuring greater transparency and efficiency.
He explained further that the amendment sought to designate the National Investment Register as the primary tool for targeting beneficiaries of social investment initiatives.
This measure, the president said, would ensure that welfare programmes were data-driven and deliver effective social protection to Nigeria’s most vulnerable citizens.
“The amendment will make our social and welfare programmes more transparent, efficient, and impactful in addressing the needs of vulnerable Nigerians,” he said.