The senate has approved a $2.2 billion loan request by President Bola Tinubu.
The upper legislative chamber approved the loan request after it considered a report by Aliyu Wamakko, chair of the committee on local and foreign debt.
The sum – equivalent to N1.7 trillion using the exchange rate of N800 to a dollar – will be used to finance the N9.1 trillion deficit in the 2024 budget.
While presenting his report, Wamakko said the funds would be raised through instruments like the Eurobonds and Sukuk.
Tinubu had asked the national assembly to approve the loan request on Tuesday.
The federal executive council (FEC) had $2.2 billion external borrowing plan to “strengthen the country’s finances and support economic reforms”.
Wale Edun, minister of finance and coordinating minister of the economy, had said approximately $1.7 billion is expected from the eurobond offer and $500 million from the sukuk financing.
Edun said the borrowing would happen this fiscal year, adding that the ultimate funding arrangement would be decided by market conditions and the transaction adviser’s counsel.
The federal government has proposed N47.9 trillion as the total expenditure in the 2025 fiscal year.