Tinubu seeks NASS approval for ₦1.77tn fresh external loan

President Bola Ahmed Tinubu has also submitted the 2025-2027 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) to Parliament, along with the National Social Investment Programme (NSIP) Establishment Amendment Bill. The bill seeks to designate the social register as the primary tool for implementing the federal government’s social welfare programs.

In related news, the Central Bank of Nigeria (CBN) recently revealed that the federal government spent $3.58 billion servicing the country’s foreign debt in the first nine months of 2024. This represents a 39.77% increase compared to the $2.56 billion spent during the same period in 2023, according to CBN’s international payment statistics report.

The report also highlighted that the highest monthly debt servicing payment in 2024 occurred in May, totaling $854.37 million, while the highest in 2023 was $641.70 million in July.

The rising trend in Nigeria’s international debt servicing, as reported by the Central Bank of Nigeria (CBN), underscores the growing burden of the country’s debt obligations.

A detailed breakdown of the figures reveals significant fluctuations in debt servicing costs throughout 2024. In January, debt servicing surged by 398.89%, increasing to $560.52 million from $112.35 million in January 2023. However, February saw a slight decline of 1.84%, with payments dropping from $288.54 million in 2023 to $283.22 million in 2024.

March recorded a sharp 31.04% decline, with payments falling to $276.17 million from $400.47 million the previous year. In April, debt servicing costs rose dramatically by 131.77%, reaching $215.20 million in 2024 compared to $92.85 million in 2023.

The highest payment occurred in May 2024, when Nigeria spent $854.37 million—an increase of 286.52% from $221.05 million in May 2023. June saw a slight dip of 6.51%, with payments totaling $50.82 million, down from $54.36 million in the previous year.

July 2024 saw a 15.48% reduction in debt servicing, with payments dropping to $542.50 million from $641.70 million in July 2023. August also experienced a decline, with payments decreasing by 9.69%, from $309.96 million in 2023 to $279.95 million in 2024. However, in September, there was a 17.49% increase in debt servicing, with payments rising to $515.81 million from $439.06 million in the same month last year.

The rising costs of debt servicing, compounded by fluctuating exchange rates, have raised concerns over the increasing pressure of Nigeria’s foreign debt obligations.

The total debt of Nigeria’s 36 states and the Federal Capital Territory (FCT) rose to ₦11.47 trillion as of June 30, 2024, despite allocations from the Federal Accounts Allocation Committee (FAAC) and their respective internally generated revenues (IGR).

Data from the Debt Management Office (DMO) revealed that this represents a 14.57% increase compared to ₦10.01 trillion recorded in December 2023.

External debt for the states and FCT also grew, rising from $4.61 billion to $4.89 billion during the period. In naira terms, this increase was more pronounced, with debts climbing by 73.46%, from ₦4.15 trillion to ₦7.2 trillion, primarily due to the devaluation of the naira, which fell from ₦899.39/$1 in December 2023 to ₦1,470.19/$1 by June 2024.

Conversely, domestic debt for the states and FCT declined, dropping from ₦5.86 trillion to ₦4.27 trillion.

As of June 2024, the states and FCT collectively accounted for ₦134.3 trillion of Nigeria’s total public debt, marking a decrease in their share from 10.29% in December 2023, despite the rise in their nominal debt levels.