President Bola Tinubu has written an approval letter for the 2022–2024 external borrowing plan of $7.8 billion and €100 million to the Senate.
Tinubu’s letter was read during the plenary by the Senate President, Godswill Akpabio on Wednesday.
According to him, the $7.8 billion and €100 million loan was approved by the past administration for the 2022–2024 borrowing plan at the Federal Executive Council (FEC) on May 15.
“Following the removal of fuel subsidy and its impact on the economy in the country, the African Development Bank (AfDB) and the World Bank Group have indicated interest in assisting the country in mitigating the economic shocks and its recent reforms.
“While the AFDB will assist the country with the sum of one billion dollars, the World Bank will give two billion dollars in addition to the Federal Executive Council’s approved 2023–2024 external borrowing plan.”
The President added that the projects and programmes borrowing plans were selected based on positive technical economic evaluations, and the expected contribution to the social economic development of the country.
He added that the plan also included the boosting of employment generation, skills acquisitions, supporting the emergence of more entrepreneurs, poverty reduction, and food security to improve the livelihood of an average Nigerian.
According to him, the projects and programs will be implemented in all 36 states of the Federation and the FCT.
“In view of the economic realities facing the country, it has become imperative that the country resort to prudent external borrowing to breach the financing gap, which will be applied to key infrastructure projects including power, railway, and health, amongst others, given the nature of these facilities.
“In a quest to bring the country to normalcy, it has become exigent to request the senate’s consideration and approval of the 2022–2024 external borrowing plan to enable the government to deliver its responsibility to Nigerians through expeditious disbursement and efficient project implementation.”