President Bola Tinubu has approached the Nigerian Senate for approval to secure a fresh external loan of $7.7 billion to help finance part of the Federal Government’s ₦20.2 trillion budget deficit.
At an exchange rate of ₦1,400 to the dollar, the proposed borrowing is estimated at approximately ₦10.78 trillion.
In a letter addressed to Senate President Godswill Akpabio, Tinubu explained that the funds would be used to cover a portion of the government’s projected budget shortfall.
Akpabio disclosed the request during plenary, revealing that the latest proposal would replace an earlier borrowing request of $20.52 billion, which the President had submitted to the Senate the previous week.
Following the presentation, the Senate President referred the letter to the Senate Committee on Local and Foreign Debts for examination and further legislative consideration.
The committee, chaired by Senator Aliyu Wamakko, who represents Sokoto North under the All Progressives Congress (APC), is expected to review the proposal before the Senate takes further action.
Further details about the loan, including its terms, intended disbursement and other borrowing arrangements, are expected to emerge as the committee begins its assessment.
The proposed $7.7 billion facility will require legislative approval before the Federal Government can proceed with the borrowing.
