Tinubu Seeks Senate Approval for Fresh $7.8bn, €100m Loans

President Bola Tinubu has approached the Senate for approval of an additional $7.8 billion and €100 million in loans, just 24 hours after seeking approval of the N2.18 trillion supplementary budget.

The President’s request was presented in a letter read by the Senate President, Godswill Akpabio, during Wednesday’s plenary.

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

A few months ago, the National Assembly approved N819.5 billion, which included a N500 billion palliative package to mitigate the impact of recent economic policies introduced by the Federal Government.

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

He further explained, “The projects cover various sectors, with a particular emphasis on infrastructure, agriculture, health, education, water supply, security, employment, and financial management reforms, among others. The total facility for the projects and programs under the borrowing plan is $7,864,508,559 and €100 million, respectively.”

Tinubu also revealed that the African Development Bank and the World Bank Group have expressed interest in providing assistance to the country to mitigate the economic shocks caused by the removal of fuel subsidy and other recent reforms, with a total of $1 billion and $2 billion, respectively.

In addition to the approved 2022-2024 external borrowing plan by the Federal Executive Council, President Tinubu emphasized the importance of approving the additional $7,864,508,559 and €1,000 million to fund the selected projects and programs, which are expected to contribute to the socio-economic development of the country.

These projects and programs will be implemented in all 36 states of the federation and the Federal Capital Territory, with a focus on key infrastructure projects such as power, railway, and health.

President Tinubu concluded the letter by stating, “Given the current economic realities facing the country, it is imperative to bridge the financing gap with external borrowing in order to deliver the government’s responsibilities to Nigerians through prompt disbursement and efficient project implementation.”