By oluwaseyi Adediran
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In a move aimed at addressing the country’s budget deficit, the Nigerian Senate has given the green light to President Bola Tinubu’s loan request of $2.2 billion. This approval comes after the Senate Committee on Local and Foreign Debts presented its report during Thursday’s plenary session.
The loan, which is equivalent to ₦1.77 trillion, is intended to partially finance the ₦9.7 trillion budget deficit for the 2024 fiscal year. President Tinubu had explained in a letter to the Senate that the loan is crucial to his administration’s fiscal strategy for the coming year.
Key Details of the Loan Request
Loan Amount: $2.2 billion (equivalent to ₦1.77 trillion)
Purpose: To partially finance the ₦9.7 trillion budget deficit for the 2024 fiscal year
Committee Review: The Senate Committee on Local and Foreign Debts reviewed the loan request and presented its report within 24 hours
The Senate President, Godswill Akpabio, had directed the committee to expedite its review of the request and present a report within 24 hours. Although the deadline elapsed on Wednesday, the committee submitted its findings during Thursday’s plenary, leading to the loan’s approval.
Implications of the Loan Approval
The approval of the loan request is expected to have significant implications for Nigeria’s economy. The loan will help to finance the country’s budget deficit, which is essential for implementing the 2024 budget. Additionally, the loan approval demonstrates the Senate’s commitment to supporting the executive arm of government in its efforts to address the country’s economic challenges.
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