President Bola Tinubu has requested the approval of the National Assembly for a fresh external loan of N1.767 trillion to help cover a portion of Nigeria’s 2024 budget deficit, which stands at N9.7 trillion. This request was made public by Speaker Tajudeen Abbass during a plenary session on Tuesday.

The proposed loan is part of efforts to address the country’s financial needs and ensure the smooth implementation of the 2024 budget. If approved, the funds will be used to part-finance the deficit. Along with this loan request, the president also submitted the Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for 2025–2027, as well as a bill to amend the National Social Investment Programme. This amendment would make the social register the primary tool for managing the government’s welfare programs.

Last week, the Federal Executive Council (FEC) also approved a $2.2 billion external borrowing plan as part of the 2024 Appropriation Act. This new borrowing, if approved, will bring Nigeria’s external debt to $45.1 billion by the end of 2024.

The Central Bank of Nigeria (CBN) has reported that the government spent $3.58 billion on foreign debt servicing in the first nine months of 2024, a 39.77% increase compared to $2.56 billion in the same period of 2023. The highest monthly debt servicing payment occurred in May 2024, amounting to $854.37 million, which was higher than the $641.7 million spent in July 2023.

The external debt for Nigeria’s states and the Federal Capital Territory also rose from $4.61 billion to $4.89 billion during this period.

As the National Assembly reviews the request, it will likely raise concerns about Nigeria’s growing external debt and the country’s ability to manage its finances in the coming years.