President Bola Tinubu has submitted a proposal to the National Assembly for a new external borrowing of N1.767 trillion as part of the 2024 appropriation bill.
If approved, the loan will be used to address a budget shortfall of N9.7 trillion in the 2024 fiscal plan. The request was communicated to the National Assembly during Tuesday’s plenary session.
Additionally, the president has sent the Medium-Term Expenditure Framework (MTEF) for 2024-2027 to the legislature. This includes a bill to amend the National Social Investment Programme (NSIP) to establish a social register as the central mechanism for implementing the government’s social welfare initiatives.
Meanwhile, the Central Bank of Nigeria (CBN) reported that the federal government allocated $3.58 billion for servicing foreign debt in the first three quarters of 2024. This marks a 39.77% increase compared to the $2.56 billion spent during the same period in 2023. The peak monthly debt servicing cost for 2024 occurred in May, totaling $854.37 million, while in 2023, the highest monthly payment was $641.70 million in July.
The CBN’s data highlights the growing costs of Nigeria’s international debt obligations, noting a significant 398.89% increase in debt servicing costs from January 2023 to January 2024, from $112.35 million to $560.52 million. February saw a slight decrease of 1.84%, with payments falling from $288.54 million in 2023 to $283.22 million in 2024.
CREDIT: Allneeds, Newscentral.Africa
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