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The recent decision of the Tinubu-led administration to borrow about $8.699 billion and €100 million may push Nigeria's total external debt to about $51.75 billion.

Nigeria’s external debt profile set to hit over $51bn as FG seeks fresh loans | Pulse Nigeria

Solomon Ekanem

<h2>The recent decision of the Tinubu-led administration to borrow about $8.699 billion and €100 million may push Nigeria's total external debt to about $51.75 billion.</h2>

In separate letters written to the two chambers of the National Assembly, President Bola Tinubu yesterday, explained that the loans which are part of the FG’s 2022-2024 external borrowing plan would be used for road construction, provision of infrastructure, agriculture and food security.

As of June 30th 2023, Nigeria’s external debt according to data from the Debt Management Office, (DMO) stood at $43.159 billion, while the domestic debt stock was N54.130 trillion.

Meanwhile, the country’s total public debt (domestic and external) stood at ₦87.379 trillion during the same period.

Experts have however noted that the increasing debt profile may portend danger for the country’s economy in future.

While admitting the positives associated with borrowing for infrastructure development, stakeholders have advocated for probity and accountability in handling the funds.

While reacting to the development, Olatunde Amolegbe, immediate past President of the Chartered Institute of Stock Brokers, CIS, said: “We cannot hope to have a developed and production-based economy without infrastructure and financing those with internally generated revenue sources could take forever and cost much more ultimately.

‘’What is needed is probity and accountability in the utilisation of borrowed funds and execution of projects.”

This was corroborated by the nation’s Attorney general and Justice minister, Lateef Fagbemi who reiterated the need to be cautious of the increasing loans and also, advised on the need to initiate a framework to checkmate possible areas of disputes.

“The Federal Ministry of Justice has, against this backdrop, initiated a collaborative framework with specialist firms to enable legal officers involved in drafting MoUs and other forms of binding agreements acquire required skills to identify possible areas of dispute or liability, which could lead to avoidable litigation or arbitration costs and judgement debt.&nbsp;

“We are willing to extend the support to legal officers in the various states in order to strengthen their capacities in this regard.” He said.

President Bola Ahmed Tinubu. [Presidency}

Nigeria’s external debt profile set to hit over $51bn as FG seeks fresh loans

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