Nigeria’s Senate has approved President Bola Tinubu’s request for a ₦1.77 trillion ($2.2 billion) loan to help bridge the 2024 budget deficit of ₦9.7 trillion.

Deputy Senate President Barau Jibrin presided over the session on Thursday, during which the Senate approved the report submitted by the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wamakko.

The loan, part of Tinubu’s external borrowing plan, adds to the rising cost of debt servicing. Recent Central Bank of Nigeria (CBN) data revealed that Nigeria spent $3.58 billion on foreign debt servicing in the first nine months of 2024, a 39.77% increase compared to $2.56 billion during the same period in 2023.

Debt servicing reached its peak in May 2024, with $854.37 million paid, reflecting a 286.52% increase from May 2023. The rising cost of debt obligations underscores Nigeria’s growing economic challenges, further exacerbated by volatile exchange rates and inflationary pressures.