The Nigerian Senate has approved President Bola Tinubu’s request to secure a $2.2 billion loan aimed at partially financing the country’s ₦9.7 trillion budget deficit for the 2024 fiscal year.
The decision comes amid ongoing debates about Nigeria’s rising debt profile and the need for fiscal discipline. The approved loan will form part of the government’s efforts to bridge the funding gap in the 2024 budget and finance critical projects to stimulate economic growth.
Nigeria’s 2024 budget, estimated at ₦26.7 trillion, has been hampered by dwindling revenue generation and economic challenges. With a deficit of ₦9.7 trillion, the Tinubu administration has sought external funding to meet pressing financial obligations while maintaining public services.
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Critics have raised concerns over the sustainability of Nigeria’s borrowing habits, warning about the risks of debt servicing overwhelming the country’s revenue. However, government officials argue that the loan is necessary to finance essential infrastructure and economic recovery programs.
More details on the terms of the loan and its allocation are expected to be disclosed in the coming days.
