Tinubu writes Reps, seeks NASS approval for $8.7bn, €100m external loan

By Christiana Ekpa

President Bola Tinubu on Tuesday wrote to House of Representatives, seeking the National Assembly approval of $8.7bn and €100m external borrowing for implementation of projects across the country.
The President in a letter dated November 24, 2023 titled”Request for approval of the Federal Government 2022-2024 external borrowing (rolling) plan” addressed to the Speaker of the House of Representatives’, Tajudeen Abbas, stated that when approved, the loan would help in implementing projects across critical sectors of the economy.
Recall that the administration of Muhammadu Buhari approved a 2022-2024 Borrowing Plan at the Federal Executive Council held on 15th May, 2023 with emphasis on infrastructure, agriculture, health, education, water supply, growth, security and employment generation, financial management reforms amongst others.
The letter read in part, “Following the removal of the fuel subsidy and its attendant impact on our economy, African Development Bank and the World Bank Group have indicated interest in assisting the country to mitigate the impact with the sum of $ 1bn and $1.5bn respectively, in addition to the FEC approved 2022-2024 External Abridged Borrowing (Rolling) Plan. Consequently, the required approval is in the sum of USD8, 699,168,559.00 and Euro 100,000,000.00
“I would like to underscore the fact that the projects and programmes in the Borrowing Plan were selected based on positive technical economic evaluations as well as the expected contribution to the socio-economic development of the country, including employment generation. Skills acquisition, support towards the emergence of more entrepreneurs, poverty reduction and food security to improve the livelihood in all 36 States of the Federation and Federal Capital Territory
“Considering the huge infrastructure deficit in the country and the enormous financial resources required to fill the gap in funding infrastructure in the face of dwindling financial resources, it has become imperative that we resort to prudent external borrowing to bridge the financial gap which will largely be applied to key infrastructure projects including power, railway health among others.
“Given the nature of these facilities and the need to return the country to normalcy, it has become necessary to request the House of Representatives to consider and approve the 2022-2024 External Abridged Borrowing (Rolling) Plan to enable the Government deliver its responsibility to Nigerians through expeditious disbursement and efficient Project Implementation.”
President Tinubu expressed optimism of the lawmakers’ readiness to give the loan request a quick and positive consideration.