Tinubu Seeks Senate Approval For $800Million World Bank Loan
President Bola Tinubu has written to the Senate to seek approval for $800 million loan to finance the National Social Safety Network Programme.
The request was contained in a letter read by Senate President Godswill Akpabio on the floor of the Senate on Thursday.
Naija News House had reported that former President Muhammadu Buhari had sought the approval of the 9th Senate in May to borrow the fund from the World Bank.
However, since Buhari had only a few more days to spend in office, the 9th Assembly could not consider the request.
But Tinubu in his letter read during plenary on Thursday, urged the lawmakers to consider the loan request.
The money is to be borrowed from the World Bank.
Tinubu’s letter reads: “Please note that the Federal Executive Council led by President Muhammadu Buhari approved an additional loan facility to the tune of $800 million to be secured from the World Bank for the National Social Safety Net programme.
“You may also wish to note that the purpose of the facility is to expand coverage of shock responsive safety net support among the poor and vulnerable Nigerians. This will assist them in coping with basic needs.
“You may further wish to note that under the conditional cash transfer window of the programme, the federal government of Nigeria will transfer the sum of N8,000 per month to 12 million poor and low-income households for a period of six months, with a multiplier effect on about 60 million individuals.
“In order to guarantee the credibility of the process, digital transfers will be made directly to beneficiaries’ accounts and mobile wallets.
“It is expected that the programme, will stimulate economic activities in the informal sector, and improve nutrition, health, education, and human capital development of beneficiaries’ households.
“Given the above, I wish to invite the Senate to kindly grant approval for the additional loan facility of $800 million to be secured from World Bank for the National Social Safety Net Programme.
“While hoping that this submission will receive expeditious consideration by the Senate, please accept the assurances of my highest regards.”
The Nigerian government had removed subsidy on Premium Motor Spirit, otherwise called petrol, shooting up the prices of the product across the country from about N200 to over N500.
Meanwhile, the president on Wednesday asked the House of Representatives to amend the 2022 supplementary appropriation Act to allow his government to source N500 billion for palliatives to ‘cushion the effect of petrol subsidy removal’.
The request came barely five weeks before the eight weeks the Federal Government and organised labour agreed for the conclusion of subsidy removal talks and palliatives.
The President, in a letter addressed to the Speaker, Tajudeen Abbas, which was read during Wednesday’s plenary, said the fund would be sourced from the 2022 Supplementary Appropriation Act of N819.5 billion.
“The request has become necessary in order to source funds to provide necessary palliatives to cushion the effect of the recent removal of fuel subsidy in Nigeria. I expect that the House will speedily consider the request,” Tinubu’s letter read in part.