President Bola Tinubu has written to the Senate, requesting approval for a fresh external borrowing plan of N1.77 trillion. This loan is intended to partly finance the N9.7 trillion deficit in the 2024 budget .
The president's letter to Senate President Godswill Akpabio and Speaker of the House of Representatives, Tajudeen Abbas, outlined three potential financing options to raise the required funds. These options include:
- Eurobonds: Nigeria can raise part of the funds through Eurobond sales in the International Capital Market (ICM) .
- Sovereign Sukuk: A debut issuance of Sovereign Sukuk worth $500 million is being considered, with credit enhancement from the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) .
- Bridge Finance/Syndicated Loans: Loans from international financial institutions like Citigroup, Goldman Sachs, and JPMorgan can be secured if Eurobond issuance faces delays due to market conditions .
The loan will support key projects in priority sectors, including power, transport, agriculture, and defense. Additionally, the proceeds will bolster external reserves through deposit into the Central Bank of Nigeria's account, thereby stabilizing the Naira .
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