On November 15, 2024, President Bola Ahmed Tinubu requested the National Assembly’s approval to borrow N1.77 trillion (approximately $2.21 billion) to help finance the N9.7 trillion deficit in the 2024 budget.
The funding will be part of a broader borrowing plan approved earlier, which includes both domestic and external borrowings.
The loan will be raised through various methods, including Eurobonds, a Sovereign Sukuk, and syndicated loans.
In his letter to Senate President Godswill Akpabio and House Speaker Tajudeen Abbas, the President outlined the process for raising the funds.Eurobonds, which have been a consistent source of funding for Nigeria, will be a key option.
Other alternatives include issuing a Sovereign Sukuk or securing Bridge Finance/Syndicated Loans if needed. The funds will support vital sectors like power, transport, agriculture, and security, as well as bolster the country’s foreign exchange reserves.
The National Assembly’s approval is required under the Debt Management Office Act to proceed with the loan arrangement.
The Ministry of Finance and Debt Management Office will ensure that the funds are raised under favorable terms.
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