Bola Tinubu has again submitted a formal request to the Senate for approval of a substantial loan of $7.8 billion and an additional €100 million.
The request was conveyed via a letter addressed to the Senate and was officially presented during a plenary session, with Senate President Godswill Akpabio reading the communication to the distinguished members.
This is coming on the heels of another significant fiscal initiative by Tinubu.
Just the day before, he had presented a supplementary budget of N2.18 trillion to the National Assembly, indicating a strong push for additional financial resources to support key government programs.
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It’s worth noting that earlier this year, in the month of August, the National Assembly had granted approval for a loan request by Tinubu, authorizing over $800 million in borrowing to fund the National Social Safety Network Programme.
The program has been a focal point in the government’s efforts to address social and economic challenges.
Recall that the National Assembly had previously approved the 2022 Supplementary Appropriations Act, allocating N819 million for “the provision of palliatives to Nigerians to cushion the effect of fuel subsidy removal.”
These financial decisions reflect ongoing efforts to navigate economic challenges and ensure the welfare of Nigerian citizens.
The letter 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 project 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 euros, 100 million euros, respectively.”
The letter noted, “The senate is invited to note that following the removal of fuel subsidy and its impact on the economy in the country, African Development Bank and the World Bank Group have indicated interest to assist the country in mitigating the economic shores and recent reforms with a sum of $1 billion and $2 billion respectively.
“In addition to the Federal Executive Council’s approved 2022–2024 external borrowing plan, Consequently, the required approval is 7,864,508,559 dollars and, in terms of euros, 1000 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 acquisition, supporting the emergence of more entrepreneurs, poverty reduction, and food security to improve the livelihood of an average Nigerian.”
Tinubu, in the letter, further explained, “The projects and programmes will be implemented in all the 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 using the external borrowing to breach the financing gap which will be applied to key infrastructure projects including power, railway, 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 letter added.
According to the Debt Management Office (DMO) report, Nigeria’s debt load escalated to N87.38 trillion by the conclusion of the second quarter of this year. This figure encompasses N33.25 trillion in external debt and N54.13 trillion in internal debt.