After unveiling the N2.18 trillion Supplementary Budget, President Tinubu has requested loans totaling $7.8 billion and €100 million.
Reports indicate that barely a day after presenting his N2.18 trillion supplementary budget request, President Bola Tinubu has approached the Senate seeking approval for a second round of loans, amounting to $7.8 billion and €100 million. This development has raised questions among Nigerians regarding the implications and necessity of these financial requests.
Senate President Godswill Akpabio disclosed the request during a plenary session on Wednesday, sparking curiosity among many observers regarding the urgency and rationale behind such borrowing.
In the letter addressed to the Senate, Tinubu defended the loan requests, emphasizing that the borrowing plan had received prior approval from the past administration during a Federal Executive Council meeting held in May 2023.
These funds are earmarked for allocation across various sectors, encompassing infrastructure, agriculture, health, education, water supply, security, employment, and financial management reforms.
Tinubu explicitly stated that both the African Development Bank (AfDB) and the World Bank Group had expressed interest in assisting Nigeria in addressing the economic repercussions 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.
The call for additional loans has sparked worries regarding Nigeria’s increasing debt load and its capacity to handle repayment obligations. While the Senate discusses this recent financial decision, Nigerians are eager for more information on the exact initiatives these loans will support and how they might affect the nation’s economic prospects.