Bola Tinubu Requests Senate Approval for $7.8bn and €100m Loans

President Bola Tinubu has approached the Senate to seek approval for additional loans totaling $7.8bn and €100m, barely 24 hours after requesting the approval of the N2.18tn supplementary budget.

The Senate President, Godswill Akpabio, read the President’s letter during the plenary on Wednesday.

Yesterday, the President presented a N2.18tn supplementary budget to the National Assembly.

A few months ago, the National Assembly approved N819.5bn, including a N500bn palliative package, to alleviate the impact of the Federal Government’s recent economic policies.

In the letter, the President stated, “The Senate may wish to note that the past administration approved the 2022–2024 borrowing plan at the Federal Executive Council meeting on May 15, 2023.

“The projects encompass various sectors, with particular emphasis on infrastructure, agriculture, health, education, water supply, security and employment, as well as financial management reforms, among others.

“The total facility of the projects and programmes under the borrowing plan is $7,864,508,559 and €100 million euros respectively.”

Tinubu revealed that the African Development Bank and the World Bank Group have expressed interest in assisting the country with $1bn and $2bn respectively to mitigate the economic shocks caused by the removal of fuel subsidy and other recent reforms.

“In addition to the Federal Executive Council approved 2022-2024 external borrowing plan, the required approval is $7,864,508,559 and €1,000 million euros.

“I would like to emphasize that the projects and programmes in the borrowing plan were chosen based on positive technical economic evaluations and their expected contribution to the socio-economic development of the country, including employment generation, skills acquisition, support for the emergence of more entrepreneurs, poverty reduction, and food security to improve the livelihood of the average Nigerian,” noted the President.

According to Tinubu, these projects and programmes will be implemented in all 36 states of the federation and the Federal Capital Territory.

“Considering the current economic realities facing the country, it has become necessary to bridge the financing gap by utilizing external borrowing for key infrastructure projects such as power, railway, and healthcare, among others.

“Given the nature of these facilities and the need to restore normalcy to the country, it is urgent to request the Senate’s consideration and approval of the 2022-2024 external borrowing plans to enable the government to fulfill its responsibilities to Nigerians through prompt disbursement and efficient project implementation,” further stated the President in the letter to the Senate.