President Tinubu Requests Senate Approval For Additional 7.8 Billion, €100 Million Loans

President Bola Tinubu requested the senate to approve a hefty loan of $7.8 billion and another €100 million on Wednesday.

Tinubu's request was sent to the senate in a letter read out by Senate President Godswill Akpabio.

"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," Tinubu mentioned in the letter, Punch reported. "The projects 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 president pointed out that the total "facility of the projects and programs" under the borrowing plan was $7.8 billion and €100 million, adding the African Development Bank and the World Bank Group are interested in assisting Nigeria in mitigating the economic shocks caused by fuel subsidy removal and others.

"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," he said.

He noted the money will be spent on key areas, including generating jobs, skills acquisitions, "supporting the emergence of more entrepreneurs, poverty reduction and food security to improve the livelihood of an average Nigerian."

The programs and projects will be implemented in all 36 states in the country. The president acknowledged that Nigeria is struggling due to the latest reforms. It has become crucial to resolve the issue by external borrowing to breach the financing gap, he explained.

"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 president added.

The request came a day after the country's national assembly approved N2.18 trillion of supplementary budget. The fund will be used for national defense, security and other emergency issues and for laborers' welfare packages.

The government's decision to a scrap fuel subsidy has increased the price of fuel and food in the country, making it difficult for citizens to survive. Last month, the Nigerian Red Cross Society (NRCS) noted that food insecurity was threatening the country's peace and stability.