President Bola Tinubu has requested the approval of the Senate for an external borrowing plan of $7.8 billion and €100 million for the years 2022-2024. The letter containing Tinubu’s request was addressed to Senate President Godswill Akpabio and was read during Wednesday’s plenary session.
According to Tinubu, the previous administration had already approved the borrowing plan during a meeting of the Federal Executive Council on May 15. The request for external borrowing is a result of the removal of fuel subsidies and its impact on the nation’s economy. Both the African Development Bank (AFDB) and the World Bank Group have expressed interest in assisting Nigeria in mitigating the economic shocks caused by the removal of subsidies and recent reforms.
The AFDB has pledged to provide $1 billion, while the World Bank will contribute an additional $2 billion to support Nigeria’s economic recovery. These funds will be in addition to the already approved borrowing plan for the years 2023-2024.
Tinubu highlights that the funds from the borrowing plan will be allocated across various sectors, with a specific focus on infrastructure, agriculture, healthcare, education, water supply, security, and job creation. The aim is to implement projects and reforms that will have a positive impact on the country’s social and economic development.
The projects and programs identified in the borrowing plan were meticulously selected based on thorough economic evaluations and their potential to contribute to poverty reduction, employment generation, skill acquisition, food security, and the nurturing of entrepreneurs. They will be implemented in all 36 states of the country as well as the Federal Capital Territory.
Tinubu emphasized the urgent need for external borrowing to bridge the financing gap and facilitate the execution of key infrastructure projects, such as power, railways, healthcare facilities, and more. He stresses that with the current economic realities facing Nigeria, the prudent utilization of external borrowing is crucial to restore normalcy and fulfill the government’s responsibility to its citizens.
In light of the circumstances, Tinubu appeals to the Senate for their consideration and approval of the 2022-2024 external borrowing plan. The expeditious disbursement and efficient implementation of these funds will enable the government to deliver on its commitments and obligations to the Nigerian people.
NAN
