Tinubu Seeks NASS Approval for N1.77tn External Loan

Nigeria sinks deeper into the debt trap as President Bola Tinubu submits a request to the National Assembly to approve additional N1.77trillion external borrowing.  A communication from the Presidency states the loan shall be used to cover and portion of the N9.7 trillion deficit plan for 2024. During Tuesday’s plenary, the Speaker read the president’s request, which also included the MTEF/FSP 2025-2027 and a bill to amend the National Social Investment Programme.  The proposed amendment aims to centralize the social register as the primary tool for welfare program implementation. Meanwhile, the Central Bank of Nigeria reported that Nigeria’s foreign debt servicing costs climbed by nearly 40% in the first nine months of 2024, amounting to $3.58 billion, up from $2.56 billion in 2023.  The country’s rising debt obligations are becoming more expensive, driven partly by fluctuating exchange rates, with January 2024 witnessing a dramatic surge in payments. In related developments, the debt of Nigeria’s 36 states and the Federal Capital Territory reached N11.47 trillion by June 2024, a 14.57% increase from December 2023.  The devaluation of the naira significantly contributed to the growth of the external debt, which rose to $4.89 billion, up from $4.61 billion. Domestic debt, however, saw a decline. The rising debt figures across the country reflect the growing fiscal pressures faced by both the federal and state governments, highlighting the need for sustainable economic management strategies.

Each Nigerian Owes N619,501 as Debt Profile Hits N134 Trillion  

Nigeria’s ever surging debt hits N134.297 trillion as of last June, dragging each citizen into a N619,501 debt burden without much to show for it. Nigeria’s Debt Management Office (DMO) reports that the figure stems from Nigeria’s total public debt, which surged to N134.297 trillion by the end of June 2024.   With the country’s population estimated at 216.7 million by the National Bureau of Statistics (NBS), the debt burden per capita reflects the mounting financial strain on citizens.  This amount is equivalent to nine times the newly approved minimum wage of N70,000.   A breakdown of the debt reveals that domestic liabilities stand at N71.2 trillion, while external obligations amount to N63 trillion.  The federal government accounts for a significant portion, with domestic debt at N66.9 trillion and external debt at N55.8 trillion. State governments owe a combined N11.3 trillion.   The N134 trillion debt figure represents a N13 trillion increase since March 2024, raising concerns about the country’s growing dependence on borrowing to finance its operations.