Why is President Tinubu Requesting a $2.2 Billion Loan? Here’s What You Need to Know

President Bola Tinubu has formally asked the National Assembly to approve a fresh $2.2 billion external loan as part of the 2024 Appropriation Act. The loan request is aimed at addressing Nigeria’s budget deficit of N9.7 trillion, was conveyed in a letter read by Speaker of the House of Representatives, Tajudeen Abbas, during Tuesday’s plenary session.

If granted, the loan will fund critical projects and close the budget gap. Tinubu also submitted the 2025-2027 Medium-Term Expenditure Framework (MTF) and Fiscal Strategy Paper (FSP) for approval, showing his administration’s fiscal strategies for the years ahead.

Loan Details

The President’s letter stated:
“I request the National Assembly’s resolution to implement a new external borrowing of $2.209 billion, as included in the 2024 Appropriation Act. This borrowing plan, approved by the Debt Management Office and the Federal Executive Council, is critical for financing the budget deficit.”

The plan includes:

• A $1.7 billion Eurobond.
• $500 million through Sukuk financing.

Additional Submissions

President Tinubu also sent the National Social Investment Programme Establishment Amendment Bill to the National Assembly. This bill seeks to make the social register the primary tool for implementing the Federal Government’s welfare programs.

In a second letter, Tinubu presented the 2025-2027 MTF and FSP, which will guide the preparation of the 2025 budget. He urged lawmakers to act quickly on the submission to ensure timely passage.