Nigeria is set to borrow more in 2024, with the Senate approving the borrowing plans of President Bola Tinubu.
Indeed, the Nigerian Senate is aware of Nigerians concern about the country’s borrowing plans, and took this into consideration before approving the new borrowing plans.
The Senate approved President Bola Tinubu’s request on the 2022-2024 external borrowing rolling plan of $7.4 billion and €100 million.
This followed the adoption of the report of the Senate Committee on Local and Foreign Debt at plenary.
Presenting the report, Haruna Manu, the vice chairman of the committee, said the committee noted with utmost importance, the genuine and very serious concerns of Nigerians about the level and sustainability, serviceability of the nation’s borrowing activities in the last decade.
A Deficit Budget
Also, he said the debt service figures constituted a huge drain on the nation’s revenue to the extent that it accounts for over 30% of its expenditure in the annual budget.
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Manu said due to the shortfall in the nation’s annual revenue concerning its need for rapid infrastructural and human capital development, the National Assembly had to pass a deficit budget every year.
This, he said, required borrowing to finance the deficit in the budget.
According to Manu, the borrowing request seeking approval of the National Assembly was proposed to be borrowed from various financial institutions.
According to him, the proposed projects in the Ministries of Education, Agriculture and Women Affairs were mostly ongoing projects and programmes in respect of which external borrowed funds have been spent in the past, including loans.
He said the projects have a great multiplier effect on stimulating economic growth.
According to him, this will happen through infrastructure development, job creation and poverty alleviation.
Also, the government will stimulate commercial and engineering activities to meet this target.
