National Assembly Approves President Tinubu’s $2.2 Billion Loan Request Amidst Public Concern

President Bola Tinubu requested the National Assembly's approval on Tuesday, November 19, to secure a $2.2 billion external loan. This proposal followed the Federal Executive Council's endorsement of the borrowing plan on November 10.

The president explained that the loan would cover the N9.7 trillion budget shortfall for 2024. His letter to the National Assembly stated: “Request for the resolution of the National Assembly for the implementation of the new external borrowing of N1,767,102,179, which is approximately $2.209 billion already enshrined in the 2024 Appropriation Act.

“In accordance with the provisions of Sections 21 and 27 Subsection 1, the Debt Management Office 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 $2.209 billion.

“The new external borrowing enshrined in the 2024 Appropriations Act partly financed the budget to about $9.17 trillion."

Despite public concerns, the National Assembly swiftly approved the request within 48 hours. This followed the submission of a report by the Senate's Committee on Local and Foreign Debts, chaired by Aliyu Wammako (APC-Sokoto), emphasizing the importance of the loan for national development.

Presenting the committee’s findings, Wammako highlighted that the loan was critical for completing ongoing projects in the 2024 budget. He added:
“It will contribute to the implementation of the debt management strategy, which seeks to reduce the cost of borrowing. It will lengthen the maturity of the public debt stock, free-up space in the domestic market for other borrowers, and help increase Nigeria’s external reserves.”

The committee recommended raising the funds through Eurobonds in the International Capital Market (ICM). Following deliberations, the Senate unanimously approved the loan, with Deputy Senate President Jibrin Barau (APC-Kano) praising the committee’s efforts.

Similarly, the House of Representatives’ Committee on Aids, Loans, and Debt Management endorsed the loan request during its plenary session.

Former Vice President Atiku Abubakar expressed alarm over the approval, citing Nigeria's worsening debt situation. Referring to a recent World Bank report, Atiku noted that Nigeria is now the third most indebted nation to the International Development Association (IDA).

He questioned the justification for the loan, especially given claims of record revenue collections by the Federal Inland Revenue Service (FIRS) and Customs. Atiku argued:
“Nigeria is sinking further in debt, and the National Assembly has become an accomplice once more. These Tinubu’s loans are bone-crushing to Nigerians and bring insufferable pressure on the economy.”

He attributed the rising debt to corruption, stating:
“It is alarming that corruption is driving this enormous thirst for loans rather than being used for infrastructure and development requirements. The persistent borrowing frenzy reflects a lack of strategic planning.”