President Bola Tinubu on Wednesday sought the Senate’s processing of a loan facility of $7,864,508,559 and €100 million earlier requested during the immediate past Muhammadu Buhari-led administration under the 2022 – 2024 external borrowing plan.
The President conveyed the request to the Red Chamber of the National Assembly through a letter he addressed to the President of the Senate, Sen. Godswill Akpabio, which was read on the floor of the Chamber during plenary session.
In the letter, Tinubu recalled that the Federal Executive Council during the Buhari administration approved the loan facility on May 15, 2023, to finance infrastructure, health, education, agriculture, insecurity and other sectors.
Although he did not state in the letter the sources of the loans but stated that the African Development Bank (AfDB) and the World Bank Group (WBG) had indicated interest to assist the country in mitigating the economic hardships and support the ongoing reforms of the government with a sum of $1 billion and $2 billion respectively.
The President stated: “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 (AFDB) and the World Bank Group (WBG) 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 approved 2022-2024 external borrowing plan.
“Consequently, the required approval is in the sum of $7,864,508,559 dollars and in terms of euro, €1000 million euros,” he added.
In addition, Tinubu pointed out in the letter that the foreign loan had become imperative in order to bridge the gap in the federal budget and boost economic activities of the country.
According to him, if the loan request is granted, the funds will be used to develop all sectors with specific emphasis on infrastructure, agriculture, health, education, water supply, security and employment as well as financial management reforms, among others.
He clarified: “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 explained further that the projects to be funded with the borrowed fund were selected based on economic evaluation and socio-economic development of the country, noting that all the projects would be implemented across the 36 States including the Federal Capital Territory.
The President expatiated: “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 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 bridge 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 deliver its responsibilities to Nigerians through expeditious disbursement and efficient project implementation”, he added.
