Tinubu Writes NASS, Wants Approval For N1.77tn Fresh External Borrowing

The New Diplomat
Writer

Ad

[FULL LIST] University of Ibadan Reclaims Crown as Nigeria’s Best Institution for 2026

By Abiola Olawale The University of Ibadan (UI) has surged back to the pinnacle of Nigerian higher education, clinching the title of the nation's top university in the Times Higher Education (THE) World University Rankings 2026. The development marks a return for UI, which dropped to fourth place in the previous year's assessment but now…

Experts React as FG, World Bank Clash Over Nigeria’s Poverty Figures

By Obinna Uballa A new poverty report by the World Bank has sparked a wave of controversy in Nigeria, with the Federal Government dismissing it as “unrealistic” and experts insisting that the figures, however grim, reflect the lived experiences of millions of citizens. The World Bank’s Nigeria Development Update released this week estimates that 139…

Israel, Hamas Greenlight First Phase of Trump’s Peace Plan

By Abiola Olawale Israel and Hamas have inked their approval on the inaugural phase of the United States President Donald Trump's Gaza peace initiative. The agreement, announced on Wednesday amid high-stakes indirect talks in Egypt, paves the way for an immediate ceasefire, the release of hostages, and a surge in humanitarian aid. This development is…

Ad

By Abiola Olawale

President Bola Ahmed Tinubu has formally submitted a request to the National Assembly, seeking legislative approval for a new external borrowing plan amounting to N1.767 trillion.

This proposal is intended to be included in the 2024 appropriation act.The President explained that the proposed borrowing is expected to secure funding for various projects and initiatives in the upcoming fiscal year.

If approved, the loan will be used to part-finance the budget deficit of N9.7tn for the 2024 budget, according to the federal government.

The president’s request was read by the speaker during plenary on Tuesday. Tinubu has also forwarded the MTEF/ FSP 2025- 2027 to parliament and the National Social Investment Programme establishment amendment bill, to make the social register the primary tool for the implementation of the federal government’s social welfare programmes.

The New Diplomat reports that this comes after the Central Bank of Nigeria (CBN) recently revealed that the Federal Government spent $3.58 billion servicing the country’s foreign debt in the first nine months of 2024.

According to official data sourced from the CBN, statistics showed that the amount represents a 39.77 per cent increase from the $2.56bn spent during the same period in 2023.

According to the report, while the highest monthly debt servicing payment in 2024 occurred in May, amounting to $854.37m, the highest monthly expenditure in 2023 was $641.70m, recorded in July.

The trend in international debt servicing by the CBN highlights the rising cost of debt obligations by Nigeria.

It would be recalled also that the New Diplomat had reported that concerns emerged in some quarters after the Federal Government outlined its budgetary plans for the years 2025 to 2027.

This is as a substantial portion of the budget is set to be directed towards servicing existing debt, which is expected to surpass the amount designated for vital capital expenditures.

The New Diplomat reports that the Federal Executive Council (FEC), meeting which was presided over by President Tinubu, last week approved the 2025 fiscal budget proposal as part of the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper for 2025-2027 by the Fiscal Responsibility Act of 2007.

A breakdown of the recently approved 2025–2027 Medium-Term Expenditure Framework and Fiscal Strategy Paper shows that FG’s projected debt servicing costs was put at N50.39 trillion for the three years, surpassing the N48.93 trillion earmarked for capital expenditures.

The escalating costs of debt servicing are becoming a pressing concern, with projections indicating an increase of 26.7%, rising from N15.38 trillion in 2025 to N19.49 trillion by 2027.

Ad

Unlocking Opportunities in the Gulf of Guinea during UNGA80
X whatsapp