Tinubu requests ₦4.5 trillion loan to address budget deficit
By Kunle Sanni
President Bola Ahmed Tinubu has formally sought the approval of the House of Representatives for a ₦4.5 trillion loan to address part of the ₦9.7 trillion budget deficit outlined in the 2024 Appropriation Act.
The request was presented by Speaker Tajudeen Abbas during Tuesday’s plenary session, as reported by the News Agency of Nigeria (NAN).
Alongside the loan proposal, the President submitted the Medium-Term Expenditure Framework and Fiscal Strategy Paper (MTEF/FSP) for 2025–2027, as well as the National Social Investment Programme Establishment Amendment Bill, for legislative consideration.
The loan request comes amid heightened concerns over Nigeria’s escalating external debt burden. Data from the Debt Management Office (DMO) reveals that the country’s external debt stock rose by $780 million in the second quarter of 2024, increasing from $42.12 billion in March to $42.9 billion in June. Projections suggest that this figure could reach $45.1 billion by the end of the year.
The Central Bank of Nigeria (CBN) have also disclosed that the Federal Government spent $3.58 billion on servicing foreign debt in the first nine months of 2024, further highlighting the fiscal challenges facing the nation.
Tinubu’s administration faces mounting pressure to balance fiscal sustainability with the need for economic growth, as stakeholders closely monitor the government’s approach to addressing the nation’s debt crisis.
