In a move to finance the 2024 budget deficit, President Bola Tinubu has written to the National Assembly, seeking approval for a fresh N1.767 trillion external borrowing plan.
This loan is based on an exchange rate of N800 to $1, as stated by the President.
*Breakdown of the Borrowing Plan*
– The loan will part-finance the budget deficit of N9.7 trillion for the 2024 budget.
– The Federal Executive Council (FEC) previously approved a $2.2 billion external borrowing plan as part of the Federal Government’s 2024 Appropriation Act financing program.
– Nigeria’s external debt may increase to $45.1 billion by the end of 2024.
The Central Bank of Nigeria (CBN) reported that the Federal Government spent $3.58 billion servicing the country’s foreign debt in the first nine months of 2024, a 39.77% increase from the $2.56 billion spent during the same period in 2023.
President Tinubu has also forwarded the MTEF/FSP 2025-2027 to parliament and the National Social Investment Programme establishment amendment bill. The amendment bill aims to make the social register the primary tool for implementing the federal government’s social welfare programs.
The President has requested an amendment to the National Social Investment Agency Act to make the social register the main source of data for all investment programs. This move is expected to enhance transparency and accountability in the implementation of social investment programs.
