Tinubu Seeks Senate Nod for N1.767tn External Loan

President Bola Tinubu has appealed to the Senate for approval of a N1.767 trillion loan to address pressing financial needs.

The President submitted a request to the National Assembly for the approval of a new external borrowing plan amounting to N1.767 trillion, as part of the 2024 appropriation act.

This request was presented by Speaker Tajudeen Abbass during a plenary session on Tuesday.

If sanctioned, the funds will contribute to addressing a budget deficit of N9.7 trillion for the upcoming fiscal year.

Additionally, the president has sent the Medium Term Expenditure Framework and Fiscal Strategy Paper for 2025-2027 to the legislature, along with an amendment bill for the National Social Investment Programme, aimed at utilizing the social register as the main instrument for executing the government’s social welfare initiatives.

Last Thursday, the Federal Executive Council approved a $2.2 billion external borrowing plan to support the financing of the 2024 Appropriation Act.

With this new borrowing initiative, reports indicate that Nigeria’s external debt could rise to $45.1 billion by the end of 2024.

The Central Bank of Nigeria recently disclosed that the Federal Government allocated $3.58 billion for servicing foreign debt in the first nine months of 2024, marking a 39.77 percent increase from the $2.56 billion spent during the same timeframe in 2023.

The report highlights that the peak monthly debt servicing payment in 2024 occurred in May, totaling $854.37 million, while the highest monthly expenditure in 2023 was $641.70 million in July.

Furthermore, external debt for the states and the Federal Capital Territory increased from $4.61 billion to $4.89 billion during the reviewed period.

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