President Bola Tinubu has transmitted the 2022/2023 external borrowing plan to the House of Representatives for approval.
According to a letter from the president read on the floor of the House by Speaker Abbas Tajudeen, on Tuesday, the government is seeking to borrow $8.6 billion and €100 million.
The borrowing plan includes $1 billion from the African Development Bank and $1.5 billion from the World Bank group.
President Tinubu said the 2022-2024 external borrowing rolling plan was approved by the previous administration of President Muhammadu Buhari on 15 May 2023.
“The Honourable members may wish to know that the past administration approved the 2022 -2024 borrowing plan at the Federal Executive Council held on 15 May 2023,” the letter reads in part.
He said the loan would be used to execute projects which “cut across sectors with specific emphasis on infrastructure, agriculture, health, education, water supply, roads, security, and employment generation as well as financial management among others.”
Mr Tinubu stated that the borrowing becomes necessary “considering the huge infrastructure deficit in the country and the enormous financial resources required to bridge the gap in funding infrastructure in the face of dwindling financial resources.
“Given the nature of these facilities and the need to return the country to normalcy, it has become necessary to request the House of Representatives to consider and approve the 2022-2024 external abridged borrowing plan to enable the government to deliver its responsibilities to Nigerians through expedient disbursement and efficient project implementation,” the letter reads.
Mr Tinubu had earlier in November sent a borrowing plan to the National Assembly for approval. The letter contained approval of $7.8 billion and €100 million.
The new plan shows that the government has now increased its borrowing plan. The president in his letter on Tuesday appears to have increased a component of the loan from $7.8 billion to $8.6 billion.
Federal debt stock
According to the National Bureau Statistics (NBS), Nigeria’s public debt stock which includes external and domestic debt rose to N87.38 trillion (US$113.42 billion) in Q2 2023 from N49.85 trillion (US$ 108.30 billion) in Q1 2023.
This, according to NBS, indicates a growth rate of 75.27 per cent on a quarter-on-quarter basis.
The statistics office said total external debt stood at N33.25 trillion (US$43.16 billion) in Q2 2023, while total domestic debt was N54.13 trillion (US$70.26 billion).
Tinubu presents 2024 budget
Mr Tinubu also informed the House that he will be presenting the 2024 budget to the legislature at 11 a.m.
“May I crave the kind indulgence of the House of the House of Representatives to grant me the .1100 hours on Wednesday 29th November 2023, to formally present the 2024 appropriation bill to a joint session of the National Assembly,” Mr Tinubu said.
After the speaker read the letter, the House dissolved into a closed-door session for about one hour.
Upon resumption, the Chief Whip of the House, Bello Kumo, moved a motion to reserve 11:00 a.m. on Wednesday for the president to enter into the chamber and address the joint session.
The motion was adopted unanimously and passed.
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