President Bola Tinubu has written to both chambers of the National Assembly seeking their approval for a foreign loan of $8.69 billion and €100 million as part of the 2022-2024 external borrowing plan of the Federal Government.
The loans will be used to finance infrastructure, agriculture, health, education, water supply, security, employment, and financial management reforms.
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This is the second Tinubu has requested the approval of the lawmakers to obtain foreign loans under the 2022-2024 external borrowing plan initiated by former President Muhammadu Buhari before he left office in May.
President Tinubu’s request was contained in a letter read by Godswill Akpabio, the Senate president during the plenary on Tuesday.
In the letter, Tinubu said the loan was first requested during the administration of Buhari under the 2022–2024 external borrowing plan. He said the loan was necessary to make his administration fulfill its promises.
On November 1, Tinubu asked the National Assembly to permit him to go ahead with the processing of a loan facility of $7,8bn and 100 million euros requested during the administration of Buhari as part of the external borrowing plan of 2022-2024. The loan request is yet to be granted by the lawmakers.
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 for $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”.