The Nigerian Senate has approved President Bola Tinubu’s request to borrow $2.2 billion (₦1.77 trillion) to help fund the ₦9.7 trillion budget deficit for 2024.
The approval came on Thursday during a plenary session after Senator Aliyu Wamakko, Chairman of the Senate Committee on Local and Foreign Debts, presented the committee’s report. Deputy Senate President Jibrin Barau, who presided over the session, praised the committee for its prompt and thorough work.
In a letter to the National Assembly earlier this week, Tinubu explained that the loan is a key part of his government’s 2024 fiscal plan. “The Presidential request for $2.2 billion, equivalent to ₦1.77 trillion, is already enshrined in the external borrowing plan for the 2024 fiscal year,” Senate President Godswill Akpabio read from the letter.
Akpabio had urged the committee to review the loan request quickly and present its findings within 24 hours. Although the report came a day later, it was approved through a voice vote on Thursday.
Some Nigerians have raised concerns about the country’s growing debt and the rising cost of servicing it. According to the Central Bank of Nigeria, $3.58 billion was spent on foreign debt servicing in the first nine months of 2024, a 39.77% increase compared to $2.56 billion in the same period last year.
Despite concerns, Deputy Senate President Barau defended the decision, saying, “This loan is crucial for bridging the fiscal gap in 2024 and ensuring that development projects are not stalled.”
