President Tinubu Requests NASS Approval For N1.77 Trillion New External Loan

President Bola Tinubu has asked the National Assembly to approve a new external borrowing plan of N1.767 trillion as part of the 2024 budget.

The president’s request was presented to the National Assembly during Tuesday’s session.

This loan, if approved, would help cover part of the N9.7 trillion budget deficit.

In addition, Tinubu submitted the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), as well as an amendment to the National Social Investment Program, which aims to make the social register the main tool for implementing the government’s welfare programs.

Meanwhile, the Central Bank of Nigeria (CBN) reported that the federal government spent $3.58 billion servicing foreign debt in the first nine months of 2024.

This marks a 39.77% increase compared to the same period in 2023, which saw $2.56 billion spent. The highest payment was made in May, amounting to $854.37 million.

The CBN report also shows a rise in debt servicing costs throughout the year. For instance, in January 2024, the cost surged by nearly 400% compared to January 2023.

The overall trend indicates increasing pressure from Nigeria’s foreign debt obligations, worsened by rising exchange rates.

In a separate report, it was revealed that the total debt of Nigeria’s 36 states had risen to N11.47 trillion by June 2024, a 14.57% increase from N10.01 trillion in December 2023.

The states’ external debt also climbed, with the value in naira rising significantly due to the devaluation of the currency.

Despite these rising debts, the total domestic debt for states decreased during the same period.

Lagos State, which has the highest foreign debt, accounts for 26.9% of the total foreign debt of all states.

A recent report highlighted the heavy reliance of many states on federal allocations to fund their budgets, with over half of the states relying on at least 55% of their revenue from the Federal Accounts Allocation Committee (FAAC).

The report points out the vulnerability of states to external financial shocks, especially due to fluctuations in crude oil prices and exchange rates.

KanyiDaily recalls President Bola Tinubu recently arrived in Rio de Janeiro, Brazil, to participate in the 19th G20 Heads of State and Government Summit.