The new request is coming amidst the recent disclosure by the Central Bank of Nigeria (CBN) that the Federal Government spent $3.58 billion servicing the country’s foreign debt in the first nine months of 2024.
By Deborah Hassan
365Daily – President Bola Tinubu has urged the National Assembly to grant it permission to procure a fresh N1.767tn to finance its N9.7 trillion 2024 Appropriation deficit.
He also forwarded the 2025- 2027 MTEF/ FSP and the National Social Investment Programme establishment amendment bill to make the social register the primary tool for the implementation of the federal government’s social welfare programmes.
The new request is coming amidst the recent disclosure by the Central Bank of Nigeria (CBN) that the Federal Government spent $3.58 billion servicing the country’s foreign debt in the first nine months of 2024, representing 39.77 per cent increase from the $2.56bn spent during the same period in 2023.
According to the apex bank, while the highest monthly debt servicing payment in 2024 occurred in May, amounting to $854.37m, the highest monthly expenditure in 2023 was $641.70m, recorded in July.
The trend in international debt servicing by the CBN highlights the rising cost of debt obligations by Nigeria.
Further breakdown of international debt figures showed that in January 2024, debt servicing costs surged by 398.89 per cent, rising to $560.52m from $112.35m in January 2023. February, however, saw a slight decline of 1.84 per cent, with payments reducing from $288.54m in 2023 to $283.22m in 2024.
March recorded a 31.04 per cent drop in payments, falling to $276.17m from $400.47m in the same period last year. April saw a significant rise of 131.77 per cent, with $215.20m paid in 2024 compared to $92.85m in 2023.
The highest debt servicing payment occurred in May 2024, when $854.37m was spent, reflecting a 286.52 per cent increase compared to $221.05m in May 2023. June, on the other hand, saw a 6.51 per cent decline, with $50.82m paid in 2024, down from $54.36m in 2023.
Given rising exchange rates, the data raises concerns about the growing pressure of Nigeria’s foreign debt obligations.
Similarly, there has been a rise in debts of the 36 states of the federation.
The total debts of the 36 states in Nigeria rose to N11.47tn as of June 30, 2024, despite allocations by the Federal Accounts Allocation Committee (FAAC), and their respective internally generated revenues (IGR).
An analysis of data from the public debt reports released by the Debt Management Office (DMO) said the rise was 14.57 per cent higher than the N10.01tn recorded in December 2023.
External debt for the states and the Federal Capital Territory also climbed from $4.61bn to $4.89bn within the period under review.
In naira terms, the debts increased by 73.46 per cent, from N4.15tn to N7.2tn, following the devaluation of the naira from N899.39/$1 in December 2023 to N1,470.19/$1 by June 2024.
However, domestic debt for states and the FCT declined from N5.86tn to N4.27tn.
In total, states and the FCT accounted for Nigeria’s public debt of N134.3tn in June 2024, a decrease from their 10.29 per cent share in December 2023, even as their nominal debt levels increased.
(Written with additional information from Channels TV)