Tinubu writes Senate requesting approval of sum of fresh $2.2 billon external loan to finance 2024 budget
President Bola Tinubu has asked the Senate to approve a fresh $2.209bn external loan incorporated into the 2024 budget.
The president’s request was contained in a letter read by the Senate President, Godswill Akpabio, during the plenary on Tuesday.
In the letter, Mr Tinubu explained that the external loan would be part of the funds that will be used to finance the N28.7 trillion 2024 Appropriation.
President Tinubu noted that his request was in accordance with the provisions of Sections 21 (1) and 27 (1) of the Debt Management Office and the approval of the Federal Executive Council (FEC).
“In accordance with the provisions of Sections 21 (1) and 27 (1) State Management Office, DMO established Act 2003 and the approval of the Federal Executive Council, I write the request for a resolution of the National Assembly to raise the sum of $2.206 provided as new external borrowing in the 2024 Appropriations Act,” the letter reads.
The president did not indicate where the loan will be sourced.
The senate president however referred the request to the Senate Committee on Local and Foreign Debts and directed the lawmakers to report their findings to the Senate within 24 hours.
Three budgets in one year
The lifespan of the 2024 budget will expire in December.
Based on the appropriation bills passed so far under the 10th senate, Nigeria is implementing three budgets in one fiscal year – the 2023 budget, 2023 supplementary budget and 2024 Appropriation Act.
The 2023 budget of N21.8 trillion and its supplementary of N2.17 trillion were the last two budgets implemented by former President Muhammadu Buhari. When President Tinubu came to power, he requested that the capital components of the two budgets be extended till June to allow the federal government to complete ongoing projects captured in the budgets.
In June, when the implementations were supposed to close, the president requested additional extension till 31 December with the same claim of completing ongoing projects. The 2023 budget and 2023 supplementary budget are under implementation despite the 2024 budget of N28.7 trillion.
This is the first time Nigeria would be implementing three budgets in one fiscal year based on the approval from the National Assembly since the return of democracy in 1999.
