Despite the huge amount currently being spent on debt servicing, the Federal Government is on the verge of embarking on more borrowing as President Bola Tinubu is seeking lawmakers’ approval for another N1.767 trillion.
If approved, the country’s public debt would hit N123.437 trillion from N121.67 trillion recorded as at the first quarter of 2024.
A breakdown of the debt status has shown that total external debt in the first quarter stood at N56.02 trillion while the total domestic debt stood at N65.65 trillion.
The president, ahead of the presentation of the 2025 Appropriation Bill, yesterday wrote to the National Assembly seeking the approvals of the N1.767 trillion new external borrowing plan in the 2024 Budget (Appropriation Act) as well as the 2025-2027 Medium Term Expenditure Framework and the Fiscal Strategy Paper (MTEF/FSP).
Tinubu’s requests were contained in separate letters addressed to the Senate President, Senator Godswill Akpabio, and Speaker of the House of Representatives, Tajudeen Abbas.
The president in the letter titled: ‘Submission of FGN 2025- 2027 Medium Term Expenditure Framework/Fiscal Paper’, asked the lawmakers to expeditiously consider the MTEF/FSP as the 2025 budget was prepared based on the document.
It read: “It is with pleasure that I forward herewith, the 2025- 2027 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF&FSP) for the kind consideration and approval by the House of Representatives.
The 2025- 2027 (MTEF&FSP) was approved during the Federal Executive Council (FEC) meeting of 10th November, 2024.
“The House is invited to note that, as the 2025 budget of the Federal Government will be prepared based on the parameters and fiscal assumptions of the approved 2025- 2027 (MTEF&FSP), it is imperative to seek National Assembly’s expeditious legislative action on this submission,” the letter stated.
Tinubu, also sent another letter titled: “Request for a Resolution of the National Assembly for the Implementation of the New External Borrowing of N1.767 trillion (about $2.209 billion) in the 2024 Appropriation Act” and addressed to the lawmakers. The president said the borrowing was to part-finance the 2024 budget deficit of N9.179 trillion.
According to him, the 2024 Appropriation Act approved the sum of N7.828 trillion as New Borrowings out of which Domestic Borrowing stood at N6.061 trillion and New External Borrowing pegged at N1.767 trillion to part-finance the N9.179 trillion budget deficit.
“In accordance with the provisions of Sections 21(1) and 27(1) of the Debt Management Office (DMO) (Establishment, Etc.) Act, 2003, and the approval of the Federal Executive Council, I write to request for a Resolution of the National Assembly to raise the sum of N1,767,610,321,779.00 (equivalent of $2,209,512,902.22 at the Budget Exchange Rate of $1.00/ N800) provided as New External Borrowing in the 2024 Appropriation Act to part finance the budget deficit of N9.179 trillion.
