The House of Representatives on Thursday approved President Bola Tinubu’s request for $2.209billion, equivalent to N1.767 trillion loan.
The approval followed the adoption of the recommendations of the House Committee on Aids, Loans and Debt Management led by Abubakar Nalaraba, which were presented at the Committee of the Whole.
In his presentation, the chairman of the Committee, Rep Abubakar Nalaraba said his committee met and made the following recommendations, which he pleaded with the House to approve.
“Approve the implementation of the New External Borrowing of one trillion, seven hundred and sixty-seven billion, six hundred and ten million, three hundred twenty-one thousand, seven hundred and seventy-nine Naira (₦1,767, 610,321,779.00) (the equivalent of USD2, 209, 512, 902. 22b) at the budget exchange rate of USD1.00/800 in the 2024 Appropriation Act and the amount should be raised from one or more sources. Namely; issuance of Eurobonds in the ICM, Issuance of debut sovereign Sukuk in the ICM, Bridge/syndicated loans, subject to market conditions;
“That based on availability and cost, to issue Eurobonds in the sum of USD1.70 billion or more, but not more than USD2,209,512,902,.22b, approved as New External Borrowing in the 2024 Act;
“Given the significant increase in the official exchange rate from USD1.00/₦800 to approximately N1,640, it is recommended that the exchange rate excess resulting from this adjustment be exclusively utilised for the implementation of capital projects in 2024, to ensure that additional funds are directed to impactful infrastructure & developmental projects that will contribute to the nation’s long-term growth and stability;
“Approve the Promissory Note Programme and Bond Issuance to settle outstanding claims and liabilities of the federal government. This 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.
“That the Hon. Minister of Finance and Coordinating Minister of the Economy, working with the Debt Management Office are authorised to take all necessary actions required to give effect to this.”
The recommendations were unanimously adopted and passed by the House.
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