Emmanuel OchayiPresident Bola Tinubu has sought Senate approval for a second round of loans totaling $7.8 billion and €100 million, barely a day after his N2.18 trillion supplementary budget request was presented.
The move has left many Nigerians wondering about the implications and necessity of these financial requests.
The request was unveiled by Senate President Godswill Akpabio during a plenary session on Wednesday, leaving many observers curious about the urgency and rationale behind such borrowing.
In the letter addressed to the Senate, Tinubu defended the loan requests, highlighting that the borrowing plan was previously approved by the past administration during a Federal Executive Council meeting in May 2023.
The funds are intended to be allocated to various sectors, including infrastructure, agriculture, health, education, water supply, security, employment, and financial management reforms.
Tinubu made it clear that the African Development Bank (AfDB) and the World Bank Group have expressed interest in assisting Nigeria to mitigate the economic shocks resulting from the recent removal of fuel subsidies and other reforms, offering $1 billion and $2 billion, respectively.
“The projects and programs borrowing plans were selected based on positive technical economic evaluations and their expected contributions to the socioeconomic development of the country,” he stated.
The President emphasized that these initiatives would encompass all 36 states of the federation and the Federal Capital Territory, with a focus on key infrastructure projects such as power, railway, and health.
“In view of the present economic realities facing the country, it has become imperative that the resolve to use external borrowing to bridge the financing gap which will be applied to key infrastructure projects, including power, railway, and health, among others,” the President declared, underscoring the urgency of the situation.
This request for further loans has stirred concerns about Nigeria’s growing debt burden and its ability to manage repayments. As the Senate deliberates on this latest financial move, Nigerians await further details on the specific projects these loans will fund and their potential impact on the country’s economic future.
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