The Nigerian Senate has approved President Bola Tinubu’s ₦1.77 trillion ($2.2 billion) loan request to address the 2024 budget deficit. This borrowing plan aims to finance fiscal shortfalls but raises concerns over Nigeria’s escalating debt servicing costs, which have surged by nearly 40% in 2024 compared to 2023.
The Nigerian Senate has approved President Bola Tinubu's request to borrow ₦1.77 trillion (approximately $2.2 billion) as part of efforts to address the country's fiscal challenges for 2024. This decision followed a report presented by the Senate Committee on Local and Foreign Debts, chaired by Senator Wamakko Magatarkada.
Deputy Senate President Barau Jibrin presided over the session, during which lawmakers voted in favor of the loan request. The proposed borrowing aims to bridge the ₦9.7 trillion budget deficit in the 2024 Appropriation Act.
The loan adds to Nigeria's growing debt profile and highlights the financial pressures facing the Federal Government. Recent data from the Central Bank of Nigeria (CBN) revealed that $3.58 billion was spent on foreign debt servicing in the first nine months of 2024, representing a 39.77% increase compared to $2.56 billion in the same period of 2023.
Concerns over Nigeria's rising debt obligations continue to mount, with critics questioning the sustainability of frequent borrowings. Social media reactions were swift, with many Nigerians expressing frustration over the growing debt burden. Some voiced concerns about the lack of visible progress from previous loans, while others lamented the financial strain on the nation’s economy.
