President Bola Tinubu has written to the National Assembly requesting approval for a new external borrowing plan of N1.767 trillion to help finance the N9.7 trillion budget deficit for 2024. If approved, the loan will contribute to covering part of the shortfall in the national budget.
The president’s request was presented to lawmakers by the Speaker during Tuesday’s plenary session.
In addition to the borrowing proposal, President Tinubu has also submitted the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for 2025-2027, as well as the National Social Investment Programme Establishment Amendment Bill.
The bill aims to make the national social register the central tool for implementing the federal government’s social welfare initiatives.
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Meanwhile, the Central Bank of Nigeria (CBN) has reported that the Federal Government spent $3.58 billion servicing the country’s foreign debt in the first nine months of 2024.
This represents a 39.77% increase compared to the $2.56 billion spent during the same period in 2023.
The CBN’s international payment statistics show that May 2024 saw the highest monthly debt servicing payment at $854.37 million, a significant rise from the $641.70 million recorded in July 2023.
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The data reveals a growing trend in Nigeria’s debt servicing costs, with notable fluctuations over the months.
In January 2024, debt servicing costs surged by 398.89%, reaching $560.52 million compared to $112.35 million in January 2023. February saw a slight reduction of 1.84%, with payments dropping from $288.54 million in 2023 to $283.22 million in 2024.
However, March experienced a 31.04% decrease in payments, falling from $400.47 million in 2023 to $276.17 million in 2024. April recorded a sharp increase of 131.77%, with $215.20 million paid in 2024, up from $92.85 million in 2023.
The highest debt servicing amount was recorded in May 2024, reflecting a dramatic 286.52% rise to $854.37 million, compared to $221.05 million in May 2023.
In June, however, there was a slight decrease of 6.51%, with payments dropping to $50.82 million from $54.36 million in 2023. Payments further declined in July by 15.48%, down to $542.50 million from $641.70 million in July 2023.
In August, there was another reduction of 9.69%, with $279.95 million paid, compared to $309.96 million in 2023.
However, September saw a 17.49% increase, with debt servicing rising to $515.81 million, up from $439.06 million in September 2023.
These figures underscore the rising pressure of Nigeria’s foreign debt obligations, especially in the context of fluctuating exchange rates, which could further strain the country’s finances.
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