President Tinubu Seeks Senate’s Approval For Fresh $7.8 billion, €100 million Loans

Barely 24 hours after seeking approval of the N2.18tn supplementary budget, President Bola Tinubu has approached the Senate for the approval of another $7.8bn and €100m loans.

The request of the President was contained in a letter to the Senate read during the plenary by the Senate President, Godswill Akpabio on Wednesday.

The President on Tuesday presented a N2.18tn supplementary budget to the National Assembly.

The National Assembly had a few months ago approved N819.5bn presented by the President, which included a N500bn palliative package to cushion the effect of the recent economic policies of the Federal Government.

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.