President Bola Ahmed Tinubu on Wednesday 01-11-2023 has officially sought the approval of the National Assembly for a loan totaling $7.865 billion and €100 million under the 2022–2024 External Borrowing Rolling Plan.
The Speaker of the House, Tajudeen Abbas, reading the President’s letter, stated: “I am writing in connection with the 2022–2024 Federal Government External Borrowing Plan for the National Assembly’s consideration and early approval to facilitate the prompt implementation of the outlined projects.
“The House of Representatives should be aware that the previous administration sanctioned the 2022–2024 Borrowing Plan during the Federal Executive Council meeting held on May 15, 2023. These projects span various sectors, including infrastructure, agriculture, health, education, water supply, economic growth, security, employment generation, and financial management reforms.
“The total financial commitment under the Borrowing Rolling Plan is $7,864,558,559 and an additional €100 million.
“The House of Representatives is hereby invited to take note that, in response to the removal of the fuel subsidy and its consequential impact on the economy, the African Development Bank (AfDB) and the World Bank Group have expressed interest in supporting the country with amounts of $1 billion and $2 billion, respectively, in addition to the already approved Federal Executive Council Borrowing Rolling Plan for 2022-2024.
“As a result, the necessary approval is sought for the sum of $7,864,559,559 and €100 million.
“I would like to emphasize that the selection of projects and programs in the Borrowing Plan underwent thorough technical and economic evaluation, considering their expected contributions to socioeconomic development. These include the overall development of the country, employment generation, skill acquisition, emergence of entrepreneurs, poverty reduction, and food security to enhance the average Nigerian’s livelihood.
“These programs and projects are slated for implementation across all 36 states of the Federation and the Federal Capital Territory.
“In light of the current economic challenges facing the country, prudent external borrowing has become crucial to bridge the gap, with specific focus on sectors such as power and railways.”
Emphasizing the urgency of the facility, President Tinubu highlighted the need to expedite the nation’s economic recovery. He argued that “it has become imperative for the National Assembly to consider and approve the 2022-2024 External Borrowing Rolling Plan to enable the government to fulfill its responsibilities to Nigerians through swift disbursement and efficient project implementation.”
In response to the President’s request for expeditious consideration, the letter has been forwarded to the joint House Committees on Aids, Loans, and Debt Management for further legislative action.