President Bola Tinubu has requested the National Assembly’s approval for a new external borrowing plan amounting to ₦1.767 trillion, as part of the 2024 Appropriation Act. The proposed loan is based on an exchange rate of ₦800 to $1 and is intended to help address the ₦9.7 trillion budget deficit for 2024.
The request was read by Speaker Tajudeen Abbas during Tuesday’s plenary session. Alongside the borrowing plan, the president submitted the Medium-Term Expenditure Framework/Fiscal Strategy Paper (MTEF/FSP) for 2025-2027 and a proposed amendment to the National Social Investment Programme Establishment Bill to formalize the social register as the primary tool for federal social welfare programs.
Last week, the Federal Executive Council approved a $2.2 billion external borrowing plan to fund part of the 2024 budget. If the National Assembly approves the new loan, Nigeria’s external debt could rise to $45.1 billion by the end of 2024.
Recent data from the Central Bank of Nigeria (CBN) revealed that the Federal Government spent $3.58 billion servicing external debts during the first nine months of 2024, a 39.77% increase from $2.56 billion in the same period of 2023. The highest monthly debt servicing payment in 2024 was $854.37 million in May, compared to $641.70 million in July 2023.
Additionally, external debt for states and the Federal Capital Territory increased from $4.61 billion to $4.89 billion during the period under review.
In a separate communication, President Tinubu urged the Senate to amend the National Social Investment Agency Act, emphasizing the need to make the social register the primary source of data for all government investment programs.
