Newscenter Media News Nigeria’s President Bola Tinubu, on Tuesday, formally requested the National Assembly’s approval for a fresh N1.767 trillion external borrowing plan to finance the country’s budget deficit of N9.7 trillion for 2024.
This move comes as the Central Bank of Nigeria (CBN) reports a significant increase in foreign debt servicing costs, sparking concerns about the nation’s growing debt obligations.
According to the CBN’s international payment statistics report, Nigeria spent $3.58 billion on foreign debt servicing in the first nine months of 2024, representing a 39.77% increase from the $2.56 billion spent during the same period in 2023. The highest monthly debt servicing payment in 2024 was recorded in May, amounting to $854.37 million.
The president’s request, read by the speaker during Tuesday’s plenary session, also includes the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for 2025-2027, as well as the National Social Investment Programme establishment amendment bill.
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The latter aims to make the social register the primary tool for implementing the federal government’s social welfare programs.
Nigeria’s public debt stock has been on the rise, standing at N87.91 trillion (US$114.35 billion) in Q3 2023, with total external debt at N31.98 trillion (US$41.59 billion) and total domestic debt at N55.93 trillion (US$72.76 billion).
Experts warn that the increasing debt servicing costs, coupled with rising exchange rates, may exacerbate the pressure on Nigeria’s foreign debt obligations. The country’s debt profile has raised concerns among stakeholders, with some advocating for prudent management of the nation’s finances.
Breakdown of Nigeria’s Foreign Debt Servicing Costs:
– January 2024: $560.52 million (398.89% increase from January 2023)
– February 2024: $283.22 million (1.84% decline from February 2023)
– March 2024: $276.17 million (31.04% drop from March 2023)
– April 2024: $215.20 million (131.77% increase from April 2023)
– May 2024: $854.37 million (286.52% increase from May 2023)
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