₦airaland Forum

Nigeria’s external debt may rise to $45.1bn by the end of 2024 as the Federal Government advances plans to secure additional external funding.

The Debt Management Office revealed in its latest report that the country’s external debt stock increased by $780m in the second quarter of 2024, growing from $42.12bn in March to $42.9bn as of June 2024.

In a fresh development, the Federal Executive Council, last Thursday, approved a $2.2bn external borrowing plan as part of the Federal Government’s 2024 Appropriation Act financing programme.

The Minister of Finance, Wale Edun, announced the decision during a briefing with State House correspondents after the FEC meeting at the Aso Rock Villa in Abuja.

According to Edun, the borrowing plan included a combination of Eurobond and Sukuk offerings, valued at $1.7bn and $500m, respectively.

The funds were expected to bolster Nigeria’s fiscal stability amid ongoing economic reforms.

Edun said the final allocation between the financial instruments would be determined based on market conditions and advice from transaction advisors, pending National Assembly approval.

“The first (memo) was to complete the borrowing programme of the FG in terms of the external borrowing with the approval of the $2.2bn financing programme made up of access to the international capital market for some combination of the Euro bond offer and the Sukuk bond offer.

“A Euro bond of about $1.7bn and Sukuk financing of another $500m the actual makeup of the financing which will be done as soon as the National Assembly has considered and seen fate to hopefully approve of the borrowing plan and the external borrowing approval is given, it will be done this year, as soon as possible after approval.

“The actual combination of instruments that will be raised will depend on what the advisors, the transaction advisors, the commercial advisers, and what they say about market conditions at the time we decide and we want to enter the market,” Edun explained.


In its report, the DMO noted that Nigeria’s external debt experienced a notable increase in its naira valuation between March 31, 2024, and June 30, 2024, due to naira devaluation.

On March 31, 2024, the total external debt was valued at $42.12bn, equivalent to N56.02tn, using an exchange rate of N1,330.26/$1.

By June 30, 2024, the external debt rose marginally to $42.90bn but surged to N63.07tn in naira terms due to a higher exchange rate of N1,470.19/$1.

This represents a 12.59 per cent increase in the naira valuation of external debt within the period, largely driven by the naira’s depreciation.


While the dollar-denominated debt grew by just 1.87 per cent, the significant devaluation amplified the burden of external debt in local currency terms, further emphasising the exchange rate’s critical role in Nigeria’s debt sustainability.

Justifying the borrowing, Edun said the external financing initiative aligned with the administration’s broader economic recovery plan, which focused on stabilising macroeconomic conditions, adjusting market pricing for foreign exchange and petroleum products, and supporting local production.

He added that, earlier in the year, Nigeria’s successful domestic issuance of dollar bonds highlighted the growing resilience and sophistication of the country’s financial market, attracting both local and international investors who showcased confidence in the Federal Government’s economic reform agenda.

The PUNCH earlier reported that the Federal Government spent $3.58bn servicing its foreign debt in the first nine months of 2024, representing a 39.77 per cent increase from the $2.56bn spent during the same period in 2023.

This was according to data from the Central Bank of Nigeria on international payment statistics.

The significant rise in external debt service payments shows the mounting pressure on Nigeria’s fiscal balance amid ongoing economic challenges.

Source: https://punchng.com/Nigerias-external-debt-may-hit-$45bn-before-january

With over taxed regime of Tinubu...

Borrow 40trillion while having only 7trilion for 2025 budget.


How can you borrow more than what you have?

Borrowing sometimes is inevitable for budget financing and infrastructural development so long as the terms are not injurious to the values of the people and inimical to the same economy which warranted the borrowing.

Also, the money must be used for its purposes and the debt servicing ratio should not inhibit the government recurrent spending.

S

For the illiterates thinking Nigeria has more than enough resources and should therefore provide every damn thing for over 250 million citizens, this current debt should disabuse your minds.

$45 billion, though very huge, shouldn't really be a serious issue on a national scale if the country is that rich as believed in some quarters. That $45 billion is less than some countries' proposed annual expenditure in a single sector of their economy.

Tinubu is not paying any subsidy, but has borrowed much more in the past eighteen months than what Buhari borrowed during his entire eight-year tenure, while still paying subsidy.

Apart from the Lagos-Calabar Coastal Highway, which is widely seen as a fraudulent project, there are no other major projects being undertaken by the Tinubu government.

This leads to the obvious conclusion that Tinubu is borrowing to loot, engage in frivolous and extravagant spending, such as borrowing to acquire a new aircraft, an all-black armored Cadillac Escalade SUV, and discarding the Mercedes Benz Maybach S-Class that Buhari used. He is also borrowing to buy a yacht and to fund senseless trips abroad, visiting hospitals in the UK and France for medical check-ups, yet failed to build a world-class hospital in Lagos despite claims that he built the state from scratch.

Cashout

thats cheap. elon musk is 8 times richer than our debt

a lil perspective

45 billion is 450 million barrels of oil. only 220 days oil supply

As expected .




Seniorwriter

EMILOKAN

That's all the useless dustbin called Tinubu can offer. Pains, sufferings, corruption and debts are the only things this useless man called Tinubu can offer. Foolish goat.

All thanks to terrible governance

Tinubu will always have a way to add to national debt

Tinubu and his cronies want to cash-out big time before 2027 because they knows that there is no 2nd chance for them. Chai! Naija we don enter

Reno mockery will stupidly present his p-hacked Oshodi data by Monday’. They will never learn!

How??

I thought we are paying our debt with the balances of the Electricity, Education and Fuel subsidies??

Abi wetin dey happen?

Don't ever take news like this serious for the purpose of your mental health.

Either Nigeria has a debt of zero dollar or a trillion dollar, politicians will continue to run the "Negro Royal Company" aka Nigeria exact way they have been running it since the fake independent of 1960.

Just like many nations of the world, Nigeria is a mere corporation with the president as the CEO.

Tinubunomic: External Reserve $40b, External debt $45b. Nigeria is moving fobackward.

JASONjnr:
With over taxed regime of Tinubu...

Borrow 40trillion while having only 7trilion for 2025 budget.


How can you borrow more than what you have?

LOL...overtax kini?

80% Of government revenue comes from oil. Less than 20% comes from other sources, including taxes. Add the fact that we rely on oil revenue from 1.3 MILLION Bpd...which would make sense if we were less than 5 million people...and you will see why we borrow.

TO stop borrowing, TInubu has to tax the 70% of Nigerians whose tax does not go to federal and state coffers. That would lead to war....so , the man runs away from reality by borrowing.

That is how all our past leaders have run the country, which led us to a situation on May 29 , 2023, whereby 99% of our revenue was going to debt service, which forced removal of subsides on fuel and dollars. ANd even now tinubu is borrowing, because the real situation would lead to him being voted out next time.

Nigerian leaders are always ready to sacrifice the economy to Molech if it means an extra hour in power.

Tinubu's agenda from the onset was 'Renewed Hope', nothing more.
Nigerians have been hopeful of a better country even before our nation's independence. Tinubu's agenda was only to renew that hope.
Everyone was hopeful that after Buhari had dragged the country backwards over 8 years, a leader will emerge to better the lot of ordinary Nigerians.
Tinubu comes forth, promises to continue from where Buhari stopped, thereby renewing our hopes afresh, and in spite of all odds, he emerges president. Yet, we claim to be disappointed in him.
To be fair to Tinubu, he is only doing exactly what he promised everyone, regardless if you voted him or not.

santopelele:
Tinubu and his cronies want cash-out bog time before 2027 because they knows that there is no 2nd chance for them. Chai! Naija we don enter

Dey play....Tinubu that already strategizing for 2027....

WeddingParol:
Borrowing sometimes is inevitable for budget financing and infrastructural development so long as the terms are not injurious to the values of the people and inimical to the same economy which warranted the borrowing.

Also, the money must be used for its purposes and the debt servicing ratio should not inhibit the government recurrent spending.

BOT

Lukuman abi lukuwaras never even start to dey collect their own share inside budget. Una go soon understand something

Bobloco:
Tinubu is not paying any subsidy, but has borrowed much more in the past eighteen months than what Buhari borrowed during his entire eight-year tenure, while still paying subsidy.

Apart from the Lagos-Calabar Coastal Highway, which is widely seen as a fraudulent project, there are no other major projects being undertaken by the Tinubu government.

This leads to the obvious conclusion that Tinubu is borrowing to loot, engage in frivolous and extravagant spending, such as borrowing to acquire a new aircraft, an all-black armored Cadillac Escalade SUV, and discarding the Mercedes Benz Maybach S-Class that Buhari used. He is also borrowing to buy a yacht and to fund senseless trips abroad, visiting hospitals in the UK and France for medical check-ups, yet failed to build a world-class hospital in Lagos despite claims that he built the state from scratch.

The same style they used to impoverished Lagos state. I’m yet to see anyone to enlighten me how and why the richest state in Nigeria is still the most indebted state in Africa.

Buhari was responsible for more than 70% of that figure

Jokerman:
How??

I thought we are paying our debt with the balances of the Electricity, Education and Fuel subsidies??

Abi wetin dey happen?

Look, you guys don't know how bad it is for us.

80% of our revenue comes from oil. Let it sink in...80% of our revenue comes from oil. 20% comes from other sources, including tax. Tax does not account for a large amount of our revenue. Add the fact that the oil revenue comes from 1.3m bpd. Not enough for a nation of 5 million.

That is why we should not have voted for tinubu. We should have voted for a leader that would have promoted production, promoted widening the tax base and economic diversificaiton, plus total removal of subsides on power and education.

Subsidy still dey on education...primary and secondary...as well as health and for 80% of consumers of electricity. (those who are not on band A).

The truth is, our government borrows, because to not borrow means they would have to tax the 70% of Nigerians who do not pay taxes, and force every NIgerian to pay premium for electricity, and remove subsides on health and non-teritiary educaiton....and guess what...it means riots.

Tinubu is borrowing because he no wan face reality. Like every Nigerian politican, he takes bad decisions to get elected again and again.

The sooner we Nigerians realize that Tinubu is using these borrowed funds to enrich himself, the better. Tinubu has borrowed more than the combined debts of the Jonathan and Buhari administrations, yet there is no subsidy payment, and no significant projects to show for it.

Even during the military era, while there was corruption, you could still see tangible structures being built, creating employment. In contrast, this government has done nothing meaningful, and the streets are now filled with more beggars than ever.

Nigeria is heading toward disaster.

Otilo..

Contact us(07080154326) for all your CAC registrations and JTB TIN..

Akfrenzy:
How much

700k a little bit negotiable