Nigeria’s external debt may rise to $45.1bn by the end of 2024 as the Federal Government advances plans to secure additional external funding.

The Debt Management Office revealed in its latest report that the country’s external debt stock increased by $780m in the second quarter of 2024, growing from $42.12bn in March to $42.9bn as of June 2024.

In a fresh development, the Federal Executive Council, last Thursday, approved a $2.2bn external borrowing plan as part of the Federal Government’s 2024 Appropriation Act financing programme.

The Minister of Finance, Wale Edun, announced the decision during a briefing with State House correspondents after the FEC meeting at the Aso Rock Villa in Abuja.

According to Edun, the borrowing plan included a combination of Eurobond and Sukuk offerings, valued at $1.7bn and $500m, respectively.

The funds were expected to bolster Nigeria’s fiscal stability amid ongoing economic reforms.

Edun said the final allocation between the financial instruments would be determined based on market conditions and advice from transaction advisors, pending National Assembly approval.

“The first (memo) was to complete the borrowing programme of the FG in terms of the external borrowing with the approval of the $2.2bn financing programme made up of access to the international capital market for some combination of the Euro bond offer and the Sukuk bond offer.

“A Euro bond of about $1.7bn and Sukuk financing of another $500m the actual makeup of the financing which will be done as soon as the National Assembly has considered and seen fate to hopefully approve of the borrowing plan and the external borrowing approval is given, it will be done this year, as soon as possible after approval.

“The actual combination of instruments that will be raised will depend on what the advisors, the transaction advisors, the commercial advisers, and what they say about market conditions at the time we decide and we want to enter the market,” Edun explained.

In its report, the DMO noted that Nigeria’s external debt experienced a notable increase in its naira valuation between March 31, 2024, and June 30, 2024, due to naira devaluation.

On March 31, 2024, the total external debt was valued at $42.12bn, equivalent to N56.02tn, using an exchange rate of N1,330.26/$1.

By June 30, 2024, the external debt rose marginally to $42.90bn but surged to N63.07tn in naira terms due to a higher exchange rate of N1,470.19/$1.

This represents a 12.59 per cent increase in the naira valuation of external debt within the period, largely driven by the naira’s depreciation.

While the dollar-denominated debt grew by just 1.87 per cent, the significant devaluation amplified the burden of external debt in local currency terms, further emphasising the exchange rate’s critical role in Nigeria’s debt sustainability.

Justifying the borrowing, Edun said the external financing initiative aligned with the administration’s broader economic recovery plan, which focused on stabilising macroeconomic conditions, adjusting market pricing for foreign exchange and petroleum products, and supporting local production.

He added that, earlier in the year, Nigeria’s successful domestic issuance of dollar bonds highlighted the growing resilience and sophistication of the country’s financial market, attracting both local and international investors who showcased confidence in the Federal Government’s economic reform agenda.

The PUNCH earlier reported that the Federal Government spent $3.58bn servicing its foreign debt in the first nine months of 2024, representing a 39.77 per cent increase from the $2.56bn spent during the same period in 2023.

This was according to data from the Central Bank of Nigeria on international payment statistics.

The significant rise in external debt service payments shows the mounting pressure on Nigeria’s fiscal balance amid ongoing economic challenges.

Some armed thugs on Saturday invaded the polling units in Ijebu Igbo to disrupt the ongoing local government elections in Ogun State.

Recall that some Ogun State residents are expected to elect chairmen and councillors into the 20 Local Government Councils and 236 wards across the three Senatorial Districts in the state.

However, it was learnt that the election was largely characterised by a low turnout of voters and logistics challenges at the early stage of the exercise in most council areas.

The News Agency of Nigeria, which monitored the exercise across the state, reports that the elections scheduled to be held between 8am and 3pm did not start until 11am in most of the polling centres.

NAN reports that most of the polling units visited at Oke-Ilewo and Adigbe areas o Abeokuta-South Local Government Area as well as Ibafo and Mowe areas in Obafemi-Owode Local Government Area were virtually empty as of 11am.

Meanwhile, election materials and electoral officials left many local government headquarters, including Ado-Odo/Ota, Abeokuta-North, and Sagamu, as late as 11am.

In multiple videos and pictures obtained online, some thugs were seen harassing voters at polling units in Ijebu Igbo town.

The media also learnt that some of the voters and residents of the town were injured by the political thugs.

Oluremi, wife of President Bola Tinubu, has urged Nigerian market women to avoid hiking food prices as the festive season approaches.

She made this appeal in Ebonyi State while addressing women during the 2024 Women’s Day Celebration at the Pa Ngele Oruta Township Stadium, Abakaliki.

“With the Yuletide season fast approaching, the First Lady appealed to market women to refrain from unfair hikes in prices of food items during the festive season,” said Busola Kukoyi, her media aide, in a statement on Saturday.

During her visit, Tinubu inaugurated a 3.1-kilometre runway at the Wilberforce Chuba Okadigbo International Airport in Onueke, noting that it would enhance the state’s socio-economic growth.

“Nigeria has everything it takes for us to be a great nation,” she said during an interaction with Ebonyi traditional rulers.

The First Lady commended Governor Francis Nwifuru for exceeding 35 per cent female representation in appointments, announcing his plan to empower 130 businesses with N1million each.

She added, “As RHI, we did not come empty-handed. We are donating a sum of N50million, 20,000 wrappers, shoes and bags to support businesses of women in that line, in this state.”