30th December, 2023
The Senate on Saturday approved the request by President Bola Tinubu to borrow $7.8 billion and €100 million to scale up infrastructure development in the country.
The credit facility is part of the 2022 – 2024 borrowing plan of the Federal Government.
Tinubu had said that the Federal Executive Council under former President Muhammadu Buhari approved the loan facility on May 15, 2023, to finance health, education, infrastructure, agriculture, insecurity, and other sectors.
The letter from the President had 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 Euro, 100 million euros respectively.”
he President’s 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 approved 2022-2024 external borrowing plan. Consequently, the required approval is 7,864,508,559 dollars and in terms of euros, 1000 million euros.”
The lawmakers approved the president’s request after considering and adopted the report of its committee on Local and Foreign Debt.
Also the Senate approved Tinubu’s request to securitise the Central Bank of Nigeria (CBN) N7.3trn Ways and Means advances to the Federal Government.
The president had earlier written to the Upper Chamber explaining that the goal of the securitisation was to reduce debt service cost and extend the repayment period of the existing loans.