Tinubu seeks Senate’s approval to borrow another $7.8bn, €100m

President Bola Tinubu has again written to the Senate to seek approval to borrow another $7.8 billion and €100 million respectively.

This development is coming barely 24 hours after the president secured the approval of the Federal Executive Council (FEC) on the N2.18 trillion Supplementary budget to be sourced from the Consolidated Revenue Fund (CRF)

The president’s request was contained in a letter to the Senate which was read during the plenary by the Senate President, GodsWill Akpabio, on Wednesday.

The letter from the President reads; “The Senate may wish to note that the past administration approved the 2022 – 2024 borrowing plan at the Federal Executive Council which was held on the 15th day of May 2023.

“The project cut 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 programmes under the borrowing plan is 7,864,508,559 dollars and then in Euro, 100 million euros respectively.”

The President’s letter noted, “The senate is invited to note that following the removal of fuel subsidy and its impact on the economy in the country, African Development Bank and the World Bank Group have indicated interest to assist the country in mitigating the economic shores and recent reforms with a sum of $1 billion and $2 billion respectively.

READ ALSO: Tinubu’s N2.17tn Supplementary Budget: The important numbers

“In addition to the Federal Executive Council approved 2022-2024 external borrowing plan. Consequently, the required approval is 7,864,508,559 dollars and in terms of euros, 1000 million euros.

“I would like to underscore the fact that the projects and programmes 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 enterprenuers, poverty reduction and food security to improve the livelihood of an average Nigerian.”

The President in the letter further explained, “The projects and programmes will be implemented in all the 36 states of the federation and the Federal Capital Territory.

“In view of the present economic realities facing the country, it has become imperative that the resolve to using the external borrowing to breach the financing gap which will be applied to key infrastructure projects including power, railway, health among others.”

“Given the nature of these facilities and the need to consolidate the country to normalcy, it has become exigent to request the senate consideration and approval of the 2022- 2024 external borrowing plans to enable the government to deliver its responsibilities to Nigerians through expeditious disbursement and efficient projects implementation,” the letter added.

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