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Senate approves part of Tinubu’s loan request, delays others

Managing the fallout of economic reform: the need for speed, integrity, and compassion

The Nigerian Senate has approved a portion of President Bola Tinubu’s 2022- 2024 external borrowing plan.

The Senate gave the approval to borrow $7.4 billion and € 100 million during its special plenary on Saturday after considering the report of the Committee on local and foreign debt.

It would be recalled that President Tinubu, had on November 1st 2023 sought the approval of the Senate to borrow a total of $7.94 billion loan.

The committee however recommended to the Senate the approval of $7.4 billion and €100 million, stating that consideration of the outstanding loan request will resume as soon as the affected agencies provide necessary information to the committee.

The report of the commmittee noted that the loans became necessary due to the shortfall in the country’s annual revneue in relation to the need for rapid infrastructure and human capital development.

It stated that the terms and conditions under which the loans will be borrowed will not in any way compromise the sustainability of Nigerian economy, or hinder the integrity and independence pf Nigeria as a sovereign nation.

If further noted that the interest rate is low and the moratorium and repayment period of the loan is long.

Senate President Godswill Akpabio consequently put the approval for the loan to a voice vote and lawmakers voted in favour for it.