In order to approve a new external borrowing plan of N1.767 trillion in the 2024 appropriation act, Nigerian President Bola Tinubu has written to the National Assembly.
The loan is based on an exchange rate of N800 to $1, the president said.
During Tuesday’s plenary, speaker Tajudeen Abbass read Tinubu’s request.
Therefore, the loan will be used to partially finance the N9.7 trillion budget deficit for the 2024 budget if it is approved.
In order to make the social register the main instrument for carrying out the federal government’s social welfare programs, the president has also sent the National Social Investment Programme establishment amendment bill and the MTEF/FSP 2025–2027 to parliament.
A $2.2 billion external borrowing plan was approved by the Federal Executive Council (FEC) last Thursday as part of the Federal Government’s financing program for the 2024 Appropriations Act.
According to the DAILY POST, Nigeria’s external debt could reach $45.1 billion by the end of 2024 as a result of the most recent move to obtain an additional $2.2 billion fresh borrowing plan.
In the first nine months of 2024, the Federal Government of Nigeria spent $3.58 billion on servicing the nation’s foreign debt, according to a recent report by the Central Bank of Nigeria.
The amount represents a 39.77 percent increase over the $2.56 billion spent during the same period in 2023, according to CBN’s data on international payment statistics.
The report states that the highest monthly debt servicing payment in 2024 was $854.37 million in May, while the highest monthly expense in 2023 was $641.70 million in July.
External debt for the states and the Federal Capital Territory also climbed from $4.61bn to $4.89bn within the period under review.
The President also requested in another letter that the National Social Investment Agency Act be amended to make the social register the primary source of information for all investment programs.