Tinubu's move to borrow N7.6 trillion will take national debt close to N100 trillion

Nigeria's external debt profile will hit close to N100 trillion as President Bola Tinubu, on Tuesday, November 28, 2023, asked for the approval of the National Assembly for a fresh $8.6 billion and 100 million euro foreign loan.

Tinubu's request is part of an external borrowing plan for 2022-2024 for essential infrastructure, such as power, roads, water, railways, and health.

Nigeria currently owes N87.379 trillion Data from the Debt Management Office reveals that Nigeria's external debt has crossed the N87 trillion mark, as domestic debt stands at N54.130 trillion.

Vanguard reports that a breakdown of Nigeria's multilateral borrowing consumed $20.790 billion, bilateral at $5.518, commercial at $15.618 billion, Promissory notes at $931 million and $300 million, respectively.

As of June 2023, domestic and external, the country's total public debt is N87.370 trillion. Tinubu also sent the FCT supplementary budget to the National Assembly for consideration and will officially present the 2024 Appropriation Bill on Wednesday, November 29, 2023.

Tinubu seeks NASS approval for fresh loans

The letter from the Presidency to the Senate President, Godswill Akpabio, and Speaker of the House of Assembly, Tajudeen Abbas, was read in plenary on Tuesday, October 28, 2023.

The letter partly reads: "The Senate may wish to note that the past administration approved a 2022-2024 borrowing plan by the Federal Executive Council, FEC, held on May 15, 2023.

"The project cuts across all sectors, with specific emphasis on infrastructure, agriculture, health, water supply, roads, security, and employment generation as well as financial management reforms.

"Consequently, the required approval is for $8,699,168,559 and €100 million.

"I would like to underscore the fact that the projects and programmes in the borrowing plan were selected based on economic evaluations as well as the expected contribution to the social and economic development of the country, including employment generation and skills acquisition.

"Given the nature of these facilities and the need to return the country to normalcy, it has become necessary for the Senate to consider and approve the 2022- 2024 external abridged borrowing plan to enable the government to deliver its responsibility to Nigerians."