According to the request read by Speaker Tajudeen Abbass during plenary on Tuesday, the President made it known that the loan is based on an exchange rate of N800 to $1, adding that if approved, the loan will be used to part-finance the budget deficit of N9.7 trillion for the 2024 budget.
The president has also forwarded the MTEF/FSP 2025-2027 to parliament and the National Social Investment Programme establishment amendment bill to make the social register the primary tool for the implementation of the Federal Government’s social welfare programmes.
The Federal Executive Council, FEC, had earlier approved a $2.2 billion external borrowing plan as part of the Federal Government’s 2024 Appropriation Act financing program, but with the move to get the additional $2.2 billion fresh borrowing plan, Nigeria’s external debt may increase to $45.1 billion by the end of 2024.
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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.
CBN’s data on international payment statistics showed that the amount represents a 39.77 per cent increase from the $2.56 billion spent during the same period in 2023.
According to the data, 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.
External debt for the States and the Federal Capital Territory also climbed from $4.61bn to $4.89bn within the period under review.
In another letter, the President asked the Senate for an Amendment to the National Social Investment Agency Act to make the social register the main source of data for all investment programmes.