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President Bola Tinubu Seeks Approval for $8.6 Billion External Borrowing Plan

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Nasiru Eneji Abdulrasheed
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President Bola Tinubu Seeks Approval for $8.6 Billion External Borrowing Plan

President Bola Tinubu of Nigeria has reached out to the House of Representatives, seeking approval for an external borrowing plan of $8.6 billion and 100 million euros. The proposed funds are earmarked for the development of critical infrastructure spanning sectors such as power, roads, water, railway, and healthcare.

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The borrowing plan, an integral part of the federal government's 2022-2024 agenda, was initially approved under the administration of former President Muhammadu Buhari. The projects and programmes included within the borrowing plan were meticulously chosen after thorough economic evaluations, with an eye on their prospective contribution to the socio-economic development of the country. These considerations include factors such as employment generation and skills acquisition.

In related news, President Tinubu has also submitted the Federal Capital Territory Supplementary Budget for the consideration of the House. Furthermore, President Tinubu is scheduled to present the 2024 national budget to the National Assembly on Wednesday. This budget has already won the approval of the Federal Executive Council (FEC), featuring a total amount of N27.5 trillion.

Adjustments in Medium-Term Expenditure Framework

The aforementioned sum follows adjustments to the Medium-Term Expenditure Framework (MTEF), a document that the National Assembly previously passed. The updated MTEF features a revised exchange rate of N750 to $1, a significant increase from the earlier rate of N700 to $1.

Additionally, the crude oil price benchmark has been adjusted to $77.96 per barrel, up from the previous figure of $73.96. Abubakar Bagudu, the Minister of Budget and Economic Planning, confirmed these alterations and the subsequent increase in the budget, which has seen a rise of over N1.5 trillion from previous estimates.

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