President Bola Tinubu has requested the National Assembly to approve a new external borrowing proposal amounting to N1.767 trillion as part of the 2024 appropriation bill.
If approved, the funds will help cover a budget shortfall of N9.7 trillion for the 2024 fiscal plan. The speaker communicated the president’s request during Tuesday’s plenary session.
In addition, the president has sent the Medium-Term Expenditure Framework (MTEF) for 2024-2027 to the legislature, along with a bill to amend the National Social Investment Programme. The bill aims to establish the social register as the main mechanism for executing the federal government’s social welfare initiatives.
Meanwhile, the Central Bank of Nigeria recently reported that the government allocated $3.58 billion for servicing the nation’s foreign debt in the first three quarters of 2024.
Data derived from the Central Bank of Nigeria’s report on international payment statistics indicates that this expenditure marks a 39.77 per cent increase compared to the $2.56 billion used during the same timeframe in 2023.
The report reveals that the peak monthly debt servicing cost in 2024 was recorded in May, totalling $854.37 million, whereas the highest monthly payment in 2023 was $641.70 million, noted in July.
The CBN’s analysis of international debt servicing underscores the escalating costs associated with Nigeria’s debt obligations.
Further analysis of international debt figures indicates that in January 2024, debt servicing expenses skyrocketed by 398.89 per cent, increasing to $560.52 million from $112.35 million in January 2023. However, February experienced a slight dip of 1.84 per cent, with payments decreasing from $288.54 million in 2023 to $283.22 million in 2024.
