LAGOS — Nigeria’s foreign debt is expected to rise further to about $51 billion, following President Bola Tinubu’s request to the Senate, seeking approval to borrow additional $7.8 billion and €100million, as part of his 2022-2024 borrowing plan.
The President in a letter addressed to the Senate yesterday, explained that the request was anchored on an approval given by President Muhammadu Buhari-led administration, after a Federal Executive Council, FEC, meeting early in May 2023.Tinubu’s letter reads: “The Senate may wish to note that the past administration approved the 2022 – 2024 borrowing plan at the Federal Executive Council which was held on the 15th day of May 2023.
“The projects and programmes will be implemented in all the 36 states of the federation and the federal capital territory “In view of the present economic realities facing the country, it has become imperative that the resolve to using the external borrowing to breach the financing gap which will be applied to key infrastructure projects including power, railway, health, among others.
He said Nigeria is at a critical juncture to either continue muddling through business as usual with the risk of things falling apart or have the courage to chart a new course, to take bold steps to finally see Nigeria rise to its true potential. “Financing is only part of the solution. It’s really the ideas and the vision. So you have my commitment. I and the team, the entire World Bank across the globe, we’re here to support you on that.
Montgomery said: ”In a global context, the big challenges are difficult global economy, shifting geopolitical and foreign policy pressures. And as I said in public before, I applaud the big and bold economic reforms that you are taking forward. I admire your leadership of ECOWAS , your strong voice on democracy, and your G-20 international engagement, all of which have thrust Nigeria back onto the international stage.
“Your policy advisory committees have identified plans, milestones and performance indicators that will be discussed at this retreat. And this cabinet retreat can start to use the SGS tracking system for good effect over the coming years to drive delivery to learn from challenges, and to move Nigeria forward.