Within 48 hours of President Bola Ahmed Tinubu’s request to the National Assembly for a N1.77 trillion ($2.2 billion) loan, lawmakers approved the proposal. The Senate, presided over by Deputy Senate President Barau Jibrin, and the House of Representatives, led by Speaker Tajudeen Abbas, swiftly adopted reports from their committees on local and foreign debts. The funds, aligned with the 2024 Appropriation Act, will be sourced via Eurobonds, debut sovereign Sukuk, and bridge/syndicated loans at a budget exchange rate of $1 = ₦800.
With this approval, Nigeria’s total debt soars to N136 trillion, heightening concerns about its economic trajectory. Former Vice President Atiku Abubakar criticized the move, accusing the National Assembly of enabling unsustainable borrowing. He highlighted a World Bank report ranking Nigeria as the third most indebted country to the International Development Association (IDA). Atiku also questioned the administration’s justification for borrowing despite record revenue claims by the Federal Inland Revenue Service (FIRS) and Customs.
The burden of servicing this debt continues to escalate. The Central Bank of Nigeria (CBN) reported $3.58 billion spent on foreign debt servicing in the first nine months of 2024, a 39.77% increase from $2.56 billion in the same period in 2023. With peak monthly servicing costs of $854.37 million recorded in May, these loans are expected to deepen fiscal pressures. Critics argue that without effective management and utilization, the debt risks undermining Nigeria’s economic stability.
Sources
- https://dailytrust.com/n-assembly-approves-tinubus-n1-77trn-loan-request/
- https://leadership.ng/in-48-hours-nass-approves-tinubus-n1-77trn-loan-request/
