President Tinubu said if the loan request is granted, the funds will be used to develop infrastructure, agriculture, health, education, water supply, security and employment as well as financial management reforms.
President Bola Tinubu is seeking the approval of the National Assembly to go ahead with the processing of a loan facility of $7,864,508,559 and €100 million requested during the administration of former President Muhammadu Buhari under the 2022 - 2024 external borrowing plan.
President Tinubu's request was contained in a letter read by the Senate President, Godswill Akpabio, at the plenary on Wednesday.
In the letter, the president said the Federal Executive Council under the Buhari administration approved the loan on 15 May to finance infrastructure, health, education, agriculture, insecurity and other sectors.
He did not, however, state where the loan will be obtained from, though he said the African Development Bank (AfDB) and the World Bank Group (WBG) have indicated interest in assisting the country in mitigating the economic shores and recent reforms with a sum of $1 billion and $2 billion respectively.
"The Senate is invited to note that following the removal of fuel subsidy and its impact on the economy in the country, the African Development Bank (AFDB) and the World Bank Group (WBG) have indicated interest in assisting the country in mitigating the economic shores 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 of $7,864,508,559 dollars and in terms of euro, €100 million euros," the letter reads.
Projects
In the letter, President Tinubu said the foreign loan is necessary to bridge the financial gap and return the economic activities of the country to normalcy.
Mr Tinubu explained that if the loan request is granted, the funds will be used to develop infrastructure, agriculture, health, education, water supply, security and employment and 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 explained further that the projects to be funded with the borrowed fund were selected based on economic evaluation and socio economic development of the country.
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He said all the projects will be implemented across the 36 states including the Federal Capital Territory.
"I would like to underscore the fact that the projects and programmes borrowing plans were selected based on positive technical economic evaluations as well as the expected contribution to the social economic development of the country, including employment generation, skills acquisitions, supporting the emergence of more entrepreneurs, poverty reduction and food security to improve the livelihood of an average Nigerian.
"The projects and programmes will be implemented in all the 36 states of the federation and the federal capital territory.
"In view of the present economic realities facing the country, it has become imperative to use the external borrowing to bridge the financing gap which will be applied to key infrastructure projects including power, railway , health among others
"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 deliver its responsibilities to Nigerians through expeditious disbursement and efficient project implementation."
