General News
Tinubu Seeks Senate’s Approval for Multi-billion Dollar External Borrowing
By Iyojo Ameh
President Bola Tinubu has formally written the Senate for approval of an external borrowing plan totaling $8.6 billion and €100 million. This request was revealed in a letter presented during Tuesday’s plenary session by Tinubu to Senate President Godswill Akpiabio, which aim to address financial gaps and fund critical infrastructure projects in Nigeria.
The borrowing plan, initially part of the 2022-2024 External Borrowing Plans endorsed by President Muhammadu Buhari’s administration, underscores the necessity for prudent external borrowing to bridge financial disparities.
President Tinubu listed the intended use of funds for key projects in sectors like power, railways, health, and others.
The proposed projects span diverse sectors, with an emphasis on infrastructure, agriculture, health, education, water supply, security, and employment generation. Tinubu also noted the interest from the African Development Bank (AfDB) and the World Bank Group, offering $1 billion and $1.5 billion respectively, following the removal of fuel subsidies and its economic implications.
The borrowing plan’s projects were selected based on positive economic evaluations, aiming to significantly contribute to Nigeria’s socio-economic development. Tinubu emphasized the plan’s focus on employment generation, skills acquisition, support for entrepreneurs, poverty alleviation, and food security to enhance the lives of Nigerians.
In response, Senate President Godswill Akpiabio directed the Committee on Local and Foreign Debt to conduct a thorough review of the proposal and provide a comprehensive report within one week.
