The Senate on Thursday at plenary approved the new external borrowing request of $2.2 billion presented for consideration by President Bola Tinubu.

The approval followed the adoption of the report of the Senate Committee on Local and Foreign Debts.

The report was presented by the Chairman of the Committee, Aliyu Wammako (APC-Sokoto).

President Bola Tinubu had on Tuesday, November 19, in separate letters to both chambers of the National Assembly, requested approval of a $2.2 billion external borrowing to partially fund the N9.7 trillion deficit in the 2024 budget.

The Senate, upon receipt of the request, mandated its committee on local and foreign debts to expeditiously ensure further legislative inputs on the request and report back within 24 hours.

Presenting the committee‘s report, Mr Wammako said the presidential request was necessary for approval.

He said the loan request would be utilised for execution of ongoing projects and programmes in the 2024 appropriation act, saying that the projects were critical for national growth and development.

Mr Wammako stated, “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.”

Mr Wammako said Nigeria could raise all or part of the $2.2 billion through the issuance of Eurobonds in the International Capital Market.

Mr Wammako thereafter recommended as follows: “That the Senate do approve the implementation of the new external borrowing of $2.2 billion at the budget exchange rate of one dollar to N800 in the 2024 appropriation act and that the amount should be raised from one or more sources. Namely, issuance of eurobonds in the ICM, issuance of debut sovereign Sukuk in the ICM, and bridge, syndicated loans, subject to market conditions.”

The report was thereafter unanimously approved via an affirmative voice vote.

In his remarks after the approval, Deputy President of the Senate, Senator Jibrin Barau (APC-Kano), who presided ovrr the plenary, commended the Wammako-led committee for a job well done.

(NAN)