Bola Tinubu has written to the National Assembly, seeking approval for a new external borrowing plan of N1.767 trillion as part of the 2024 Appropriation Act.
Tinubu made this known in a request read by the speaker during plenary on Tuesday.
This is as the Central Bank of Nigeria recently said the Federal Government spent $3.58 billion servicing the country’s foreign debt in the first nine months of 2024.
If approved, the loan will be used to part-finance the budget deficit of N9.7tn for the 2024 budget.
READ MORE:Tinubu’s Govt to Spend N50.2 Trillion on Nigeria’s Debt Servicing by 2025 to 2027
Data sourced from the Central Bank of Nigeria (CBN) report on international payment statistics showed that the amount represents a 39.77 per cent increase from the $2.56bn spent during the same period in 2023.
According to the report, while the highest monthly debt servicing payment in 2024 occurred in May, amounting to $854.37m, the highest monthly expenditure in 2023 was $641.70m, recorded in July.
However, trend in international debt servicing by the CBN highlights the rising cost of debt obligations by Nigeria.
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