Tinubu’s New $8.6bn Loan Bid Takes Debt Above $51.759bn

President Bola Tinubu has asked the National Assembly to approve fresh foreign loans of $8.6 billion and €100 million for 2022-2024. The loans are meant to fund critical infrastructure projects, such as power, roads, water, railway, and health.

The request is part of the external borrowing plan that the President submitted to the lawmakers yesterday. He also forwarded the Federal Capital Territory (FCT) supplementary budget and announced that he will present the 2024 Appropriation Bill to a joint session of the National Assembly today.

According to the Debt Management Office (DMO), Nigeria’s external debt stock as of June 2023 stood at $43.159 billion, while its domestic debt stock was N54.130 trillion. This brings the total public debt (domestic and external) to N87.379 trillion.

The breakdown of the external debt shows that multilateral borrowing accounted for $20.790 billion; bilateral, $5.518 billion; commercial, $15.618 billion; promissory notes, $931.7 million; and $300 million.

The new foreign loans, if approved, will increase Nigeria’s external debt profile to over $51.759 billion. This raises concerns about the country’s debt sustainability and repayment capacity.