The approval came after the Senate deliberated on and adopted the report presented by its committee on Local and Foreign Debt during the Saturday plenary session.

Tinubu clarified that the loan facility, approved by the Federal Executive Council under former President Muhammadu Buhari on May 15, 2023, aimed to fund various sectors, including infrastructure, health, education, agriculture, and addressing insecurity.

He emphasized that the foreign loan was essential to address the financial gap and restore the country’s economic activities to normalcy.

The funds are earmarked for the development of infrastructure, agriculture, health, education, water supply, security, employment, and financial management reforms.

Additionally, the Senate approved Tinubu’s request to securitize the Central Bank of Nigeria’s (CBN) ₦7.3 trillion Ways and Means advances to the Federal Government.

Tinubu, in a letter read by the Senate President, stated that the securitization aimed to reduce debt service costs and extend the repayment period of existing loans.

The Ways and Means provision allows the government to borrow from the Central Bank for short-term or emergency financing to support fiscal shortfalls or delayed cash receipts.

The interest rate for the securitized Ways and Means advances has been lowered to 9% per annum, compared to the MPR of 0.3%.

Tinubu highlighted, “The savings arising from the much lower interest rate will have to reduce the deficit in the budget.”