President Bola Tinubu has written to the National Assembly for the approval of the plan to borrow $7.8 billion and €100 million ($106 million) for various projects.
Tinubu’s request was contained in separate letters to the Senate and House of Representatives. The letters were read at the upper and lower chambers on Wednesday.
Tinubu said if approved, the funds will be used to develop infrastructure, agriculture, health, education, water supply, security, and employment as well as financial management reforms.
In the letter, he noted that the Federal Executive Council under the Buhari administration approved the loan on May 15 to finance infrastructure, health, education, agriculture, insecurity, and other sectors.
Tinubu said the African Development Bank and the World Bank Group have indicated interest in assisting the country in mitigating the economic shocks and recent reforms with a sum of $1 billion and $2 billion respectively in addition to the 2022-2024 external borrowing plan approved by the Federal Executive Council.
He said this followed the removal of fuel subsidies and its impact on the economy.
“Consequently, the required approval is of 7,864,508,559 dollars and in terms of euros, 100 million euros,” the letter reads.
According to Tinubu, foreign loans are necessary to bridge the financial gap and return the economic activities of the country to normalcy.
“The project cuts 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 programs under the borrowing plan is 7,864,508,559 dollars and then in euro, 100 million euros respectively,” he said.
The president said the projects to be funded with the borrowed fund were selected based on economic evaluation and socio-economic development of the country, adding that they will be implemented across the 36 states and the Federal Capital Territory.
Tinubu, however, did not state where the loans would be obtained from.
He said: “I would like to underscore the fact that the projects and programs borrowing plans were selected based on positive technical economic evaluations as well as the expected contribution to the social economic development of the country, including employment generation, skills acquisitions, supporting the emergence of more entrepreneurs, poverty reduction and food security to improve the livelihood of an average Nigerian.
“The projects and programs will be implemented in all the 36 states of the federation and the federal capital territory.”