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From Kenneth Udeh, Abuja
The sum of over eight Billion dollars has been requested by President Bola Tinubu as required in the Federal Government’s 2022-2024 external borrowing rolling plan to fund key infrastructure projects such as power, railway, health, among others.
President Tinubu’s request as contained in a letter written to the Senate on Tuesday sought the approval of the National Assembly for the Federal Government to source for the loan facility which is the sum of $8,696,168,555.
As part of the Federal Government’s 2022-2024 external borrowing rolling plan, Tinubu in his letter informed the Senate that following the removal of the fuel subsidy and its attendant impact on the Nigerian economy the African Development Bank (AFDB) and the World Bank group have indicated interest in assist the country to mitigate the economic impacts of the fuel subsidy removal with the sum of $1 billion and $1.5 billion, respectively.
According to Tinubu’s letter read by Senate President Godswill Akpabio during plenary the past administration approved a 2022 – 2024 borrowing plan at the Federal Executive Council which was read on May 15 2023.
Tinubu explained that the loan will enable the Federal Government to deliver on its responsibility, he told the Senate that the loan facility would be used to restore normalcy to the country.
Assuring the Senate that the loan would be judiciously spent, Tinubu added that the loan would be used to bridge the financial gap and will largely be applied to key infrastructure projects such as power, railway and other projects.
The letter read partly; “Request for approval of the Federal Government 2022-2024 external borrowing rolling plan for consideration and early approval of the National Assembly to ensure prompt implementation of the projects.
“The Senate may wish to note that the past administration approved a 2022 – 2024 borrowing plan at the Federal Executive Council which was read on May 15 2023.
“The project cuts across sectors with specific emphasis on infrastructure, agriculture, health, education, water supply, growth, poverty reduction and food security, security and employment generation as well as financial management reforms, amongst others.
“In addition to the Federal Executive Council’s 2023 to 2024 of the Federal abridged borrowing rolling plan consequently the required approval is in the Sum of United States Dollars Eight Billion, Six Hundred and Ninety-Nine Million, One Hundred and Sixty Eight Thousand and Five-Hundred and Fifty Nine United States Dollars(8,696,168,555), For the euro it is 100 million.
“Considering the huge infrastructural deficit in the country and the enormous financial resources required to fill the gap in funding infrastructure it has become imperative to result in prudent and external borrowing to bridge the financial gap which will largely be applied to key infrastructure projects such as power, railway and other projects.
“Given the nature of these facilities and the need to return the country to normalcy It has become necessary to request the Senate to consider and approve the 2022 to 2024 external abridged borrowing rolling plan to enable the Government to deliver its responsibility to Nigerians through expeditious disbursement and efficient budget implementation.”
Consequently the Senate President referred Tinubu’s request to the Senate committee on local and foreign debts for consideration and asked the committee to report back to the Senate within one week.
