Senate Approves $2.347b External Borrowing Plan, $500m Debut Sovereign SUKUK

The Senate has approved President Bola Tinubu’s request to borrow the sum of $2.347 billion as part of the external borrowing plan from the international capital market to part-finance the 2025 budget deficit and refinance maturing Eurobonds.

The red chamber also approved the issue of a $500 million Debut Sovereign SUKUK in the International Capital Market to fund infrastructural projects.

The resolutions of the Senate followed its consideration and adoption of its Committee on Local and Foreign Debts, presented by its Chairman, Senator Aliyu Wamakko, during plenary.

The report was titled “New External Borrowing and Refinancing.”

The request was first read on the floor of the Senate on October 8, seeking for new external borrowing and debt.

Commenting on the report, Chairman of the Senate Committee on Finance, Senator Mohammed Sani Musa urged his colleagues to support the approval as it has been captured in the fiscal document of the Federal Government.

“It is very needful that we give approval to this request so that the 2025 appropriation will be given the necessary funding,” Musa said.

Chairman of the Senate Committee on Banking, Adetokunbo Abiru, said there’s nothing new in the request other than to ensure compliance with the revenue framework.

“This is more of a compliance issue because the 2025 Appropriation Act as it is has already captured it as part of the deficit financing”.

Senator Adams Oshiomhole recalled that the chamber had previously agreed that there’s nothing wrong with borrowing if it is for addressing problems like unemployment and decaying infrastructure.

James Itodo, Edited By Grace Namiji