President Bola Ahmed Tinubu has formally requested the National Assembly (NASS) to approve a fresh external borrowing of N1.77 trillion to help finance the federal government’s projected budget deficit for 2024.
The request was contained in a letter addressed to both chambers of the National Assembly, which was read during plenary sessions on Monday. According to President Tinubu, the proposed loan will serve as part-financing for the N9.7 trillion budget deficit outlined in the 2024 Appropriation Bill.
The letter emphasized the necessity of the loan to ensure the successful implementation of key government programs and infrastructure projects embedded in the budget. Tinubu assured lawmakers that the borrowing plan aligns with his administration’s fiscal responsibility framework and commitment to economic recovery.
Key Details of the Request
1. Budget Deficit: The federal government’s total expenditure for 2024 is projected to exceed revenues by N9.7 trillion.
2. Purpose of the Loan: The external borrowing will be used to fund critical projects and close the financing gap in the budget.
3. Loan Sources: Details of potential lenders and terms were not disclosed but are expected to follow Nigeria’s existing external debt strategy.
The proposal has already sparked debate among lawmakers and economic analysts, with concerns raised over Nigeria’s growing debt profile. As of mid-2023, Nigeria’s total public debt stood at N87 trillion, a figure expected to increase significantly if the proposed loan is approved.
Some members of the opposition have criticized the move, questioning the sustainability of continued borrowing and the government’s efforts to boost revenue generation. Others, however, argue that external loans are necessary to address the nation’s pressing infrastructure and social development needs.
Chairman of the Senate Committee on Finance, Senator Sani Musa, expressed cautious optimism, noting, “While borrowing is not inherently bad, we must ensure that every naira borrowed translates to tangible benefits for Nigerians.”
The National Assembly is expected to deliberate on the president’s request in the coming days, with experts urging lawmakers to scrutinize the loan terms and its projected impact on the economy.
This development comes amid broader economic reforms under Tinubu’s administration, including subsidy removal and foreign exchange liberalization, which have elicited mixed reactions from citizens and stakeholders.
The debate on this request is likely to shape Nigeria’s fiscal policy discourse for the foreseeable future.