The House of Representatives on Thursday approved President Bola Ahmed Tinubu’s request for new external borrowing of ₦1.767 trillion (USD 2.209 billion equivalent) under the 2024 Appropriation Act.
The funds are to be raised through Eurobonds and other financing sources.
The approval followed the consideration of a report by the House Committee on Loans and Debt, which endorsed sourcing the funds from multiple channels, including the issuance of Eurobonds in the international capital market (ICM), debut sovereign Sukuk, and bridge/syndicated loans, depending on market conditions.
Speaker Abbas Tajudeen read the President’s request on the House floor earlier in the week.
The lawmakers emphasized that the exchange rate adjustment from USD1/₦800 to approximately ₦1,640 should result in surplus funds. These additional resources are to be dedicated exclusively to capital projects in 2024, ensuring they are channeled toward impactful infrastructure and development initiatives that promote long-term economic growth and stability.
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It also approved the Promissory Note Programme and Bond Issuance to settle outstanding claims and liabilities of the Federal Government.
According to the House, the approval prioritizes the issuance of Promissory Notes to address outstanding reimbursement debts owed to States, high-priority judgment debts, and other liabilities incurred by Federal Ministries, Departments, and Agencies. This measure is critical to preventing additional interest costs, mitigating further increases in the Federal Government’s debt profile, and reducing the debt-to-GDP ratio.
It asked the Minister of Finance and Coordinating Minister of the Economy, working with the Debt Management Office to take all necessary actions required to give effect to this.