Tinubu Seeks Senate’s Approval To Borrow $7.8bn, €100m

President Bola Ahmed Tinubu has asked the Senate to approve a request to borrow $7.8billion and €100 million as part of the 2022 – 2024 borrowing plan of the Federal Government.

The president made the request in a letter read by the Senate President Godswill Akpabio during plenary session.

Tinubu said the Federal Executive Council under former President Muhammadu Buhari had approved the loan facility on May 15, 2023 to finance infrastructure, health, education, agriculture, insecurity and other sectors.

He said, “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 (AFDB) and the World Bank Group (WBG) have indicated interest to assist the country in mitigating the economic shocks and recent reforms with a sum of $1 billion and $2 billion respectively in addition to the Federal Executive Council approved 2022-2024 external borrowing plan.

“Consequently, the required approval is in the sum of $7,864,508,559 and in terms of euro, €100 million euros.”

President Tinubu further explained that the foreign loan has become necessary to bridge the financial gap and return the economic activities of the country to normalcy.

The funds, he said, would be used to develop infrastructure, agriculture, health, education, water supply, security and employment as well as financial management reforms.

“The project cuts 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 said.

-Dailytrust