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BREAKING: Tinubu Requests ₦1.767 Trillion Loan From NASS To Fund 2024 Budget Deficit

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1 month ago

Nov 19, 2024.

President Bola Tinubu has submitted a request to the National Assembly for approval of a fresh external borrowing plan amounting to ₦1.767 trillion.

The loan is intended to partially bridge the ₦9.7 trillion budget deficit in the 2024 appropriation act. The Speaker of the House of Representatives read the president’s request during Tuesday’s plenary.

If approved, the borrowing will help fund critical federal economic and developmental initiatives in the 2024 fiscal year. Alongside the loan request, Tinubu presented the Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) for 2025-2027 to provide a fiscal strategy for achieving the administration’s long-term economic goals.

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Additionally, he submitted the National Social Investment Programme Establishment Amendment Bill for legislative consideration.

Tinubu

The request comes as the Central Bank of Nigeria (CBN) reports that the federal government spent $3.58 billion on foreign debt servicing in the first nine months of 2024, a 39.77% increase compared to $2.56 billion during the same period in 2023.

CBN data highlights fluctuating monthly debt servicing costs, with notable increases observed in January 2024, where payments rose 398.89% to $560.52 million from $112.35 million in January 2023. Similarly, May 2024 saw a record-high payment of $854.37 million, marking a 286.52% rise from $221.05 million in May 2023.

While some months experienced declines—such as July 2024, which saw a 15.48% reduction to $542.50 million from $641.70 million in July 2023—September 2024 recorded a 17.49% increase, with payments climbing to $515.81 million from $439.06 million in September 2023.

The upward trend in debt servicing costs, compounded by rising exchange rates, underscores the increasing strain of Nigeria’s foreign debt obligations on the national economy.

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