The Senate has been asked to approve President Bola Tinubu’s intention to borrow 8.6 billion dollars and 100 million euros from outside sources in 2023–2024. This is stated in a letter that was read aloud in plenary on Tuesday and was written to Godswill Akpiabio, the president of the Senate.
According to Tinubu, the proposal for the borrowings was originally included in the 2022–2024 external borrowing plans that President Muhammadu Buhari’s government authorized on May 15 at the Federal Executive Council.
According to him, in order to close the budget deficit, the Federal Government must now only use responsible external borrowing. He said that the cash will be utilized to carry out important infrastructure projects, such as those related to health, power, and railroads.
“The projects cut across all sectors with specific emphasis on infrastructure, agriculture, health, education, water supply, security, employment generation amongst others, ” he said.
He said following the removal of fuel subsidy and its attendant impact on the economy, the African Development Bank (AFDB) and the World Bank Group have indicated interest to assist Nigeria in mitigating the impact.
He said the projects and programmes in the borrowing plan were selected based on positive technical economic evaluation and their expected contribution to the social economic development of the country.
He also listed employment generation, skills acquisition, support towards the emergence of entrepreneurs, poverty education and food security to improve the livelihood of Nigerians as reasons for the facility.
Akpiabio mandated the Senate Committee on Local and Foreign Debt to look at the letter for further legislative work and report back in one week. # Tinubu Seeks Approval for $8.6bn, €100m Foreign Loans
