Nigeria's House of Representatives has rejected the government's proposal to procure a presidential yacht for $6 million amid public criticism of extravagant spending during an economic crisis, according to senior lawmaker Abubakar Bichi.

Instead, lawmakers redirected the $6 million to increase the budget for student loans, effectively doubling its allocation.

President Bola Tinubu, who assumed office in May with a pledge to reduce waste and alleviate financial burdens on citizens, sparked controversy when he presented a supplementary budget to the National Assembly.

The proposed purchase of the yacht was listed within the Nigerian Navy's capital expenditure of $53 million.

Human rights activist and former lawmaker Shehu Sani reacted by saying that "the poor can't be struggling for survival in a canoe while their leader is yachting".

Mr. Tinubu's spokesperson, Temitope Ajayi, clarified that the president had no involvement in the plans to acquire the yacht.

"From what I know, the request for a yacht, however it is named or couched in the budget is from the navy and they must have operational reasons for why it is required," he said.

The budget, which was approved by the House of Representatives on Thursday, allocates $36 million for State House expenses, including luxury vehicle purchases and the construction of a presidential office complex. Additionally, $15 million is earmarked for the presidential air fleet.

This issue has arisen at a critical time when President Tinubu is facing significant challenges related to the cost of living and the steep depreciation of Nigeria's currency, the naira, against the US dollar. Nigeria's annual inflation rate reached 26.7% in September, according to official data.

A leading advocacy group in Nigeria, the Socio-Economic Rights and Accountability Project (Serap), said the purchase of a yacht could not be justified when "137 million Nigerians live in extreme poverty".

Furthermore, their situation has deteriorated following President Tinubu's decision to eliminate fuel subsidies in his inaugural address, leading to increases in fuel prices and the cost of essential goods.

Activist Omoyele Sowore accused the government of spending on luxuries while it "maintains the miseries of the Nigerian populace".

Mr Ajayi said the president and his vice-president were not planning to add new vehicles to their fleet, and were using "inherited vehicles" from the previous administration.

He said the budget for vehicles was for hundreds of civil servants and political aides working at State House.