President Bola Tinubu has sought the Senate for approval of another $7.8 billion and €100 million loans, just 24 hours after asking approval of the N2.18 trillion supplementary budget.
The President’s appeal was contained in a letter to the Senate read during the plenary on Wednesday by Senate President Godswill Akpabio.
Remember that the President proposed a N2.18 trillion supplementary budget to the National Assembly on Tuesday.
The National Assembly approved N819.5 billion proposed by the President a few months ago, which contained a N500 billion palliative package to soften the impact of the Federal Government’s recent economic policies.
The letter from the President read, “The Senate may wish to note that the past administration approved the 2022–2024 borrowing plan at the Federal Executive Council which was held on the 15th day of May 2023.
“The projects cut across all sectors with specific 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 dollars and then in Euro, 100 million euros respectively.”
Tinubu disclosed that the African Development Bank and the World Bank Group had indicated an interest in assisting the country in mitigating the economic shocks occasioned by the removal of fuel subsidy and other recent reforms with a sum of $1bn and $2bn respectively.
“In addition to the Federal Executive Council approved 2022-2024 external borrowing plan. Consequently, the required approval is 7,864,508,559 dollars and in terms of euros, 1,000 million euros.
“I would like to underscore the fact that the projects and programmes borrowing plans were selected based on positive technical economic evaluations as well as the expected contribution to the social economic development of the country, including employment generation, skills acquisitions, supporting the emergence of more entrepreneurs, poverty reduction and food security to improve the livelihood of an average Nigerian,” the President noted.
According to Tinubu, the projects and programmes will be implemented in all 36 states of the federation and the Federal Capital Territory.
“In view of the present economic realities facing the country, it has become imperative that the resolve to use external borrowing to breach the financing gap which will be applied to key infrastructure projects including power, railway, and health, among others.
“Given the nature of these facilities and the need to consolidate the country to normalcy, it has become exigent to request the Senate consideration and approval of the 2022- 2024 external borrowing plans, to enable the government to deliver its responsibilities to Nigerians through expeditious disbursement and efficient projects implementation,” the President further stated in the letter to the Senate.
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