Tinubu Requests House Approval for $8.6bn, €100m External Borrowing for Critical Infrastructure

President Bola Tinubu has formally approached the House of Representatives, seeking approval for an external borrowing plan totaling $8.6 billion and €100 million. The funds are earmarked for crucial infrastructure development across sectors such as power, roads, water, railway, and health.

In addition to the borrowing proposal, the President has submitted the Federal Capital Territory Supplementary Budget to the House for careful consideration.

Simultaneously, President Tinubu is scheduled to present the 2024 budget to the National Assembly on Wednesday. This announcement comes on the heels of the Federal Executive Council’s recent approval of a 2024 budget amounting to N27.5 trillion.

The approval followed a comprehensive review of the Medium-Term Expenditure Framework (MTEF) previously endorsed by the National Assembly. The MTEF set the exchange rate at N700 to $1 and a crude oil price benchmark of $73.96 per barrel. However, the Minister of Budget and Economic Planning, Abubakar Bagudu, revealed on Monday that the FEC had revised the MTEF. The new parameters include an exchange rate of N750 to $1 and a benchmark crude oil reference price of $77.96 per barrel.

Bagudu further disclosed that the FEC greenlit an Appropriation Bill for 2024, reflecting an aggregate expenditure of N27.5 trillion. This figure represents an increase of over N1.5 trillion from the initial estimate.