The Nigerian Senate has given the green light to President Bola Tinubu’s external borrowing plan for the years 2022-2024, amounting to 7.4 billion dollars and 100 million euros. This momentous decision was reached following the endorsement of the Senate Committee on Local and Foreign Debt’s report during a plenary session.
Sen. Haruna Manu, the Vice Chairman of the Committee, emphasized the committee’s acknowledgment of the valid concerns raised by Nigerians regarding the nation’s borrowing practices over the past decade. The committee recognized the substantial impact of debt servicing on the country’s revenue, constituting over 30% of its annual budget expenditure.
The shortfall in annual revenue in relation to Nigeria’s significant requirements for rapid infrastructural and human capital development has necessitated the enactment of deficit budgets annually, leading to the need for borrowing to finance these deficits. The borrowed funds are earmarked to be sourced from various financial institutions.
It’s important to note that the proposed projects in the Ministries of Education, Agriculture, and Women Affairs are largely ongoing initiatives that have previously benefited from external financing. These projects are expected to yield a remarkable multiplier effect by fostering economic growth through infrastructure development, creating employment opportunities, alleviating poverty, and stimulating commercial and engineering activities.
The approval of this external borrowing plan underscores the government’s commitment to propelling sustainable development across various sectors, furthering job creation, and improving the overall socio-economic landscape of Nigeria.
