Tinubu writes NASS, seeks approval for N1.77tn fresh external borrowing

If approved, the funds will help address the ₦9.7 trillion budget deficit for 2024.

This request was presented today during plenary by the Speaker of the National Assembly.

In addition, the president submitted the 2025–2027 Medium-Term Expenditure Framework and Fiscal Strategy Papers (MTEF/FSP) and an amendment bill for the National Social Investment Programme, aiming to make the social register the primary tool for implementing federal welfare programs.

Meanwhile, the Central Bank of Nigeria (CBN) reported that the Federal Government spent $3.58 billion servicing foreign debt in the first nine months of 2024—a 39.77% increase from $2.56 billion during the same period in 2023.

May 2024 recorded the highest monthly payment of $854.37 million, a 286.52% rise compared to $221.05 million in May 2023.

This upward trend highlights the mounting cost of Nigeria’s debt obligations, further exacerbated by rising exchange rates.

Separately, the Debt Management Office (DMO) revealed that the combined debt of Nigeria’s 36 states and the Federal Capital Territory rose to ₦11.47 trillion by June 30, 2024, up from ₦10.01 trillion in December 2023—an increase of 14.57%.

This surge was driven by external debts, which grew from $4.61 billion to $4.89 billion, and the devaluation of the naira, which raised the naira-denominated value of these debts.

However, domestic debts for states and the FCT declined from ₦5.86 trillion to ₦4.27 trillion during the same period.

A report by BudgIT on state fiscal performance highlighted the heavy reliance of many states on federal allocations, with 32 states depending on the Federation Account Allocation Committee (FAAC) for at least 55% of their total revenue in 2023. Lagos and Ogun were notable exceptions, generating a significant portion of their revenue internally.

Lagos State alone contributed ₦1.24 trillion to the combined state revenues, accounting for 14.32%.

The findings emphasize the vulnerability of state governments to external shocks, such as fluctuating oil prices and exchange rate volatility, and underscore the need for improved fiscal sustainability through enhanced internally generated revenue.