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.
