Tinubu seeks Senate approval to borrow fresh N1.767trn

President Bola Tinubu has submitted a request to the National Assembly seeking approval for a new external borrowing plan amounting to N1.767 trillion under the 2024 Appropriation Act. The borrowing is based on an exchange rate of N800 to $1.

The request was presented during Tuesday’s plenary by the Speaker of the House of Representatives, Tajudeen Abbass. If approved, the loan will help finance the 2024 budget deficit, estimated at N9.7 trillion.

Additionally, the president has forwarded the 2025-2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) to parliament. He also submitted an amendment bill to the National Social Investment Programme Establishment Act to designate the social register as the primary tool for implementing federal social welfare programs.

Last week, the Federal Executive Council (FEC) approved a $2.2 billion external borrowing plan as part of the Federal Government’s 2024 budget financing strategy. With this new borrowing request, Nigeria’s external debt could rise to $45.1 billion by the end of 2024, according to Daily Post reports.

Meanwhile, data from the Central Bank of Nigeria (CBN) shows that the Federal Government spent $3.58 billion on foreign debt servicing in the first nine months of 2024. This marks a 39.77% increase compared to $2.56 billion during the same period in 2023. The highest monthly debt servicing payment in 2024 occurred in May, amounting to $854.37 million, while the peak in 2023 was $641.70 million, recorded in July.

External debt for Nigeria’s states and the Federal Capital Territory also increased from $4.61 billion to $4.89 billion during the same period.

In a separate letter, President Tinubu requested the Senate to amend the National Social Investment Agency Act to mandate the use of the social register as the central source of data for all government investment programs.