President Bola Tinubu, on Tuesday, requested the Senate to grant him approval for a fresh loan of $8.69 billion and €100 million as part of the 2022-2024 external borrowing plan of the Federal Government.
President Tinubu, in a letter read during plenary on the floor of the Upper Chamber by the President of the Senate, Godswill Akpabio, explained that the loan would be used to finance infrastructure, agriculture, health, education, water supply, security and employment as well as financial management reforms.
The President’s request was coming 24 hours before his presentation of the 2024 budget to a joint session of the National Assembly.
Tinubu pointed out that the loan was first requested during the administration of former President Muhammadu Buhari under the 2022- 2024 external borrowing plan.
It’s pertinent to note that this was the second time the President would be seeking approval of the National Assembly to obtain foreign loans under the 2022 – 2024 external borrowing plan initiated by former President Buhari before he left office in May.
In November, Tinubu asked the National Assembly to grant him approval to process a loan facility of $7.86 billion and €100 million requested during the administration of ex-President Buhari as part of the external borrowing plan for 2022 – 2024.
In the fresh loan request, Tinubu stated that it became necessary for borrowing in order to make his administration fulfil its promises to Nigerians.
The letter reads “I write in respect of the above subject and to submit the attached federal government 2022-2024 external borrowing plan for consideration and early approval of the National Assembly to ensure prompt implementation of the projects.
“The senate may wish to note that the past administration approved a 2022-2024 borrowing plan by the Federal Executive Council (FEC) held on May 15, 2023.
“The project cuts across all sectors, with specific emphasis on infrastructure, agriculture, health, water supply, roads, security, and employment generation as well as financial management reforms.
“Consequently, the required approval is in the sum of $8,699,168,559 and €100 million.
“I would like to underscore the fact that the projects and programmes in the borrowing plan were selected based on economic evaluations as well as the expected contribution to the social economic development of the country, including employment generation, and skills acquisition.
“Given the nature of these facilities, and the need to return the country to normalcy it has become necessary for the Senate to consider and approve the 2022- 2024 external abridged borrowing plan to enable the government to deliver its responsibility to Nigerians.”
It will be recalled that, a fortnight ago, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said that Nigeria could not rely on borrowing to fund the 2024 budget.
Edun expressed this position at the National Assembly Complex when he appeared before the joint Senate Committee on the 2024-2026 MTEF/FSP.
