Presidency Clarifies Tinubu’s Fresh $24 Billion Borrowing Request To National Assembly

The presidency has clarified that President Bola Tinubu is not requesting a fresh $24 billion loan, as previously sent to the National Assembly.

Naija News reports that the opposition parties and political elites have criticised the proposed borrowing, which would add approximately ₦38.24 trillion to the existing debt stock, potentially pushing Nigeria’s total public debt from ₦144.67 trillion at the end of 2024 to over ₦182.91 trillion by 2026.

However, the Senior Special Assistant to the President on Media, Tope Ajayi, in an interview on ‘Real Talk With Kike’ said President Tinubu is not borrowing a fresh $24 billion loan but only presented a loan plan to the National Assembly.

According to Tope, under the Fiscal Responsibility Law, the federal government can submit its borrowing plan to the National Assembly, and it does not necessarily mean that money will be borrowed.

Tope also stated that Tinubu’s $24 billion loan plan includes the Federal and state governments, as well as the FCT, adding that only the president has the privilege to borrow money externally.

He said, “The administration is not borrowing $24 or $21 billion. Under the fiscal responsibility law, the government send the borrowing plan to the National Assembly. It is a plan, not that the government will not borrow tomorrow. It is not the federal government borrowing alone; it is a plan that includes both the federal and state governments. It is a three-year borrowing plan.

“The president cannot go to the National Assembly every quarter or six months to discuss borrowing. The law makes a provision for the president to present a three year borrowing that includes the states and FCT. You must understand that only the President can borrow externally, and no state can do that no matter the project you are working on.

“In the three-year borrowing plan, the President has incorporated the plans of every state into it, and it is presented to the National Assembly for review, debate, and approval. And the fact that you have a plan does not necessarily mean the money will be taken but it is good for planning. In actual fact the federal government is paying Nigerian debt. The FG just paid $3.4billion IMF loan for Covid 19, ₦300 billion Sukuk (Islamic bond).

“The Federal government and states, including FCT, are paying down on their debt due to money realised from the fuel subsidy. Many states are able to fund their projects and pay salaries because of the policy of fuel subsidy. The money saved from fuel subsidy are the money, the federal, state and local government are using.”