Nigeria's Financial Landscape Shifts as Lawmakers Greenlight President Tinubu's 7.5 Trillion Naira Debt Conversion to Bonds Accompanied by a 2024 Spending Plan
Nigerian legislators have given their nod to President Bola Tinubu's proposal to transform 7.5 trillion naira ($8.2 billion) in overdrafts from the central bank into longer term bonds, contributing to the nation's overall debt. During a session on Saturday, the senate granted approval, concurrently endorsing a 2024 spending plan of 28.77 trillion naira, surpassing Tinubu's initial proposal of 27.5 trillion naira. President Tinubu asserted that this conversion would slash the debt servicing cost to 9%, compared to the existing monetary policy rate plus 3%. Additionally, he emphasized that the move would enhance the transparency of obligations owed to the banking regulator. In a similar vein, back in May, lawmakers greenlit the conversion of 22.7 trillion naira in central bank loans into bonds. This request had originated from Tinubu's predecessor, Muhammadu Buhari, whose administration witnessed a staggering 3,000% surge in loans from the central bank. This surge contributed to a more than 50% spike in Nigeria's outstanding debt, reaching 87.9 trillion naira by September.