Tinubu Asks Senate for Approval of $7.8bn and €100m Loans
President Bola Ahmed Tinubu has requested the Senate’s permission for more loans, just one day after seeking approval for a supplementary budget of N2.18tn. The President submitted a letter to the Senate, which was read during the session by Senate President Godswill Akpabio on Wednesday.
On Tuesday, President Tinubu presented a supplementary budget of N2.18tn to the National Assembly, which was approved a few months ago, including a N500bn relief fund to offset the impact of recent government economic policies.
In the letter, President Tinubu stated, “The Senate should note that the previous administration approved the 2022–2024 borrowing plan at the Federal Executive Council on May 15, 2023. These projects cover various sectors such as infrastructure, agriculture, health, education, water supply, security, employment, and financial management reforms.”
The total amount required for these projects and programs in the borrowing plan is $7,864,508,559 in dollars and 100 million euros.
President Tinubu also mentioned that the African Development Bank and the World Bank Group have expressed interest in providing $1bn and $2bn, respectively, to help the country address the economic challenges caused by the removal of fuel subsidies and recent reforms.
He emphasized that the projects and programs in the borrowing plan were carefully selected based on positive economic evaluations and their potential to contribute to the country’s socio-economic development, including job creation, skill development, support for entrepreneurs, poverty reduction, and food security.
These projects and programs will be implemented in all 36 states and the Federal Capital Territory. President Tinubu highlighted the urgency of these external borrowings to bridge the financing gap for critical infrastructure projects like power, railways, and healthcare. He requested the Senate’s approval of the 2022-2024 external borrowing plan to enable the government to efficiently deliver its responsibilities to the Nigerian people.