Nigeria’s foreign debt is predicted to increase to approximately $51 billion as a result of President Bola Tinubu’s appeal to the Senate for authorization to borrow an additional $7.8 billion and €100 million as part of his borrowing strategy for 2022–2024.

    Financial analysts challenge stated rationale for borrowing, suggesting it’s intended as a stopgap measure for the nation’s current balance of payments crisis. As of June 2023, Nigeria’s foreign debt stands at $43.2 billion, with domestic debt at N54.1 trillion, resulting in a total public debt of N113.4 trillion. In light of the new borrowing proposal and the naira’s depreciation, total public debt is projected to exceed N130 trillion.

    Rad also No one can overthrow my political system — Wike

    Additional $7.8 Billion

    According to a letter addressed to the Senate, President Tinubu cited a prior approval by the Buhari administration at a Federal Executive Council meeting in May 2023. Senate President Godswill Akpabio presented Tinubu’s request during the plenary session The Senate may wish to take note of the fact that the previous government approved the 2022–2024 borrowing plan at the Federal Executive Council meeting, which was held on the 15th of February, according to Tinubu’s letter. 15th day of May 2023.”

    “All sectors are affected by the programs, but infrastructure, agriculture, health, education, water supply, security, jobs, and financial management changes are given special attention.

    The projects and programs covered by the financing plan have a facility of $7,864,508,559 USD and, subsequently, 100 million EUR, respectively.

    The Senate is informed that the World Bank Group (WBG) and the African Development Bank (AfDB) have signaled their willingness to assist the country in offsetting the impacts of recent reforms and the elimination of fuel subsidies, with a commitment of $1 billion and $2 billion, respectively. This offer comes in addition to the external borrowing plan sanctioned by the Federal Executive Council for the period 2022–2024.

    “As a result, the necessary endorsement is for the amount of $7,864,508,559 in dollars and 1000 million euros.

    “It is important to highlight that the selection of the projects and programs for borrowing plans was based on positive technical economic assessments, as well as the anticipated contributions to the socioeconomic advancement of the nation, such as generating employment, fostering skills acquisition, supporting the emergence of more entrepreneurs, reducing poverty, and enhancing food security to improve the livelihood of the average Nigerian.

    “The projects and programs will be implemented across all 36 states of the federation and the federal capital territory. Given the current economic challenges facing the country, it has become essential to utilize external borrowing to bridge the financing gap, which will be allocated to key infrastructure projects, including power, railway, and healthcare, among others.”

    “It is imperative that the Senate consider and approve the 2022–2024 external borrowing plan in light of the current state of affairs and the need to restore normalcy to the country. This will allow the government to fulfill its obligations to Nigerians by ensuring prompt project implementation and disbursement.”

    Explore more Business news on