The Senate has approved President Bola Tinubu’s request for over ₦2 trillion ($2.2 billion) loan, a decision reached via a voice vote under the leadership of Deputy Senate President, Barau Jibrin.
The approval followed the presentation of a report by the Senate Committee on Local and Foreign Debts, chaired by Senator Wammako Magatarkada (APC, Sokoto North).
The loan, part of the President’s external borrowing plan, is intended to partially address the ₦9.7 trillion budget deficit for the 2024 fiscal year.
Tinubu had written to the National Assembly earlier in the week, seeking endorsement for over ₦2 trillion in new borrowings as outlined in the 2024 Appropriation Act.
This development comes as Nigeria grapples with a growing debt servicing burden.
The Central Bank of Nigeria (CBN) recently revealed that the Federal Government spent $3.58 billion servicing foreign debts in the first nine months of 2024 – a 39.77% increase compared to $2.56 billion during the same period in 2023.
Data from the CBN highlights a troubling trend, with debt servicing costs surging in several months.
The most significant monthly payment of $854.37 million was recorded in May 2024, representing a 286.52% increase compared to May 2023.
Meanwhile, January 2024 saw a staggering 398.89% rise in servicing costs year-on-year.
The escalating costs, coupled with fluctuating exchange rates, underscore Nigeria’s mounting foreign debt obligations, raising concerns about fiscal sustainability.
