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Nigeria nearer to debt distress as Senate approves fresh $2.2bn loan request today - HALLMARK
Nigeria’s total debt is set to hit an all-time high of N136 trillion, as the Senate is set to approve the $2.2bn (about N1.77tn) loan request of President Bola Tinubu today (Wednesday).
The request, submitted by the President, is part of the external borrowing plan outlined for implementing the N28.7tn 2024 budget.
In separate letters read during the Senate and House of Representatives plenary on Tuesday, Tinubu explained that the loan would partially finance the N9.7tn budget deficit for the 2024 fiscal year.
After reading the letter, Senate President Godswill Akpabio tasked the Senate Committee on Local and Foreign Debts to examine the request and report back within 24 hours.
Akpabio stated, “The Presidential request for $2.2bn, equivalent to N1.77tn, is already enshrined in the external borrowing plan for the 2024 fiscal year.
“The Senate Committee on Local and Foreign Loans should therefore give the request expeditious consideration and report back within 24 hours.”
Additionally, Tinubu submitted the Medium-Term Expenditure Framework and Fiscal Strategy Paper for 2025–2027 to both the Senate and the House of Representatives.
Akpabio directed the Senate Committee on Finance, National Planning, and Economic Affairs to consider the MTEF/FSP documents and report back within one week.
Key parameters in the MTEF/FSP include a $75 oil price benchmark per barrel, daily oil production of 2.06 million barrels, an exchange rate of N1,400 to $1, and a targeted GDP growth rate of 6.4 per cent.
These figures form the basis for consideration and approval of the proposed N47.9tn 2025 budget.
In a related development, President Tinubu also forwarded the Social Investment Programme Amendment Bill to the National Assembly.
The proposed amendment aims to strengthen the framework for implementing social welfare programs, ensuring greater transparency and efficiency.
According to Tinubu, the amendment seeks to designate the National Investment Register as the primary tool for targeting beneficiaries of social investment initiatives.
This measure, he explained, would ensure that welfare programmes are data-driven and effectively provide social protection for Nigeria’s most vulnerable citizens.
Tinubu added, “The amendment will make our social and welfare programs more transparent, efficient, and impactful in addressing the needs of vulnerable Nigerians.”
He emphasised that the proposal, submitted under Section 58(2) of the 1999 Constitution (as amended), requires urgent consideration by the Senate.
If passed, the amendment is expected to improve the management and delivery of social investment programmes, enhancing their capacity to combat poverty and inequality across the country.
The Senate has referred the bill to relevant committees for review, with deliberations expected in subsequent sessions.
This move underscores the Tinubu administration’s commitment to leveraging technology and data to optimise the impact of its social welfare initiatives.
