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Tinubu Seeks Fresh Loan: Foreign Debt Exceed $51 Billion with $7.8 Billion and €100 Million Requests

Tinubu Seeks Fresh Loan: Foreign Debt Exceed $51 Billion with $7.8 Billion and €100 Million Requests 

By Adeke Chukwuka

Nigeria’s foreign debt is anticipated to increase to approximately $51 billion due to President Bola Tinubu’s request to the Senate for approval to borrow an additional $7.8 billion and €100 million as part of his 2022-2024 borrowing plan.

Certain financial analysts have contested the official explanation for the borrowing, asserting that it serves as a bridging loan to alleviate the country’s existing balance of payments crisis.

As of June 2023, Nigeria’s foreign debt stood at $43.2 billion, and domestic debt was recorded at 54.1 trillion naira, totaling 113.4 trillion naira in public debt.

Following the recent presidential request for additional borrowing and the depreciation of the naira, the projected total public debt is expected to reach 130 trillion naira.

The President, in a letter to the Senate, clarified that this request was based on approval granted during a Federal Executive Council meeting in May 2023, under the administration of President Muhammadu Buhari.

Senate President Godswill Akpabio presented Tinubu’s request for additional borrowing during a plenary session. In the letter, Tinubu highlighted that the 2022–2024 borrowing plan, approved by the past administration, focuses on diverse sectors such as infrastructure, agriculture, health, education, water supply, security, employment, and financial management reforms.

The proposed funding for these projects is 7,864,508,559 dollars and 100 million euros. Tinubu emphasized the positive impact these projects would have on Nigeria’s social and economic development, including employment generation, skills acquisition, entrepreneurship support, poverty reduction, and food security.

It was also noted in the letter that the request is essential to address the economic challenges, bridge the financing gap, and expedite key infrastructure projects like power, railways, and healthcare, among others. Tinubu urged the Senate’s consideration and approval for efficient project implementation and prompt disbursement.

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