The President of the Federal Republic of Nigeria is said to have submitted a loan request to the National Assembly for approval.
The request was presented by the Speaker during a plenary session earlier today at the National Assembly complex.
The loan if approved, will be used partly to cover the N9.7 trillion budget deficit of 2024
With Nigeria’s public debt already at N134.3 trillion since June 2024; this includes that of all the 36 States (a problem ChannelsTV highlighted as one of the major causes of Nigeria’s growing debt) the country continues to increase its foreign debt to tackle domestic needs.
According to Sahara Reporters, the Central Bank of Nigeria (CBN) revealed that the Federal Government spent $3.58bn servicing its foreign debt between January and October 2024, marking a 39.77% rise from the $2.56bn spent in the same period in 2023.
Reactions from Nigerians on social media show that majority of them are not in support of the loan request, and are urging the National Assembly not to approve.
Speaking on ChannelsTv, senator Jimoh Ibrahim believes the president is doing the right thing, as loan remains the only way put for Nigeria.
Ibrahim explained his point using Dubai as an example, saying that Dubai got the money for infrastructure by borrowing. That if you borrow and develop infrastructure, you’re better for it.
He also said it is crazy for Nigeria to not think of borrowing when its debt ratio to GDP is just 50% as a developing nation; also mentioning that China’s debt ratio to GDP is 46%, America is 123% while England is 95%.
“You are developing country. Tell me, what are you doing with GDP of 50% debt ratio to GDP?…. You need to borrow more money, and borrow properly. Borrow large volume of money, exceed your existing debt, and move on”, he said.
He said borrowing $2 billion is too small an amount.
