Nigeria’s President, Bola Tinubu, has formally requested the National Assembly’s approval for an additional N1.767 trillion in external borrowing as part of a new financing plan for the 2024 fiscal year. This loan request is based on an exchange rate of N800 to $1, as stated by the president in his letter to the Assembly.
The request was presented during the National Assembly plenary session on Tuesday by the Speaker, Tajudeen Abbass. If approved, the borrowed funds will be used to help cover part of the N9.7 trillion budget deficit outlined for 2024.
Alongside this request, President Tinubu also forwarded the 2025-2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) to parliament. Additionally, he submitted the National Social Investment Programme Establishment Amendment Bill, which aims to designate the social register as the primary tool for implementing the federal government’s social welfare initiatives.
In related developments, last Thursday, the Federal Executive Council (FEC) also gave its approval for a $2.2 billion external borrowing plan to support the financing of the Federal Government’s 2024 Appropriation Act. This move, coupled with the recent borrowing request, could bring Nigeria’s external debt to an estimated $45.1 billion by the end of 2024.
Furthermore, the Central Bank of Nigeria (CBN) recently reported that the Federal Government spent $3.58 billion servicing the country’s foreign debt in the first three quarters of 2024. This marks a significant 39.77% increase from the $2.56 billion spent in the same period in 2023. CBN’s international payment statistics revealed that the highest debt servicing payment in 2024 occurred in May, amounting to $854.37 million, compared to the $641.70 million in July 2023. Additionally, external debt for states and the Federal Capital Territory rose from $4.61 billion to $4.89 billion during the same period.
In a separate communication, President Tinubu also sought the Senate’s approval for an amendment to the National Social Investment Agency Act, with the goal of ensuring that the social register becomes the central database for all federal government investment programs.
