The Global News reports that President Bola Tinubu’s request to borrow $7.8bn and €100 million as part of the 2022-2024 borrowing plan of the Federal Government has been granted by the Senate.
The Senate approved the request during Saturday’s plenary following the consideration and adoption of the report from its committee on Local and Foreign Debt.
The President had stated that the Federal Executive Council, during the tenure of former President Muhammadu Buhari, had sanctioned the loan facility on May 15, 2023. The funds are earmarked for financing projects in infrastructure, health, education, agriculture, security, and various other sectors.
Tinubu emphasized that the foreign loan is deemed necessary to address the financial gap and restore the country’s economic activities to a state of normalcy.
He said the fund would be used to develop infrastructure, agriculture, health, education, water supply, security and employment as well as financial management reforms.
In a related development, the Upper Chamber also approved the President’s request to securitise the Central Bank of Nigeria N7.3tn Ways and Means advances to the Federal Government.
Tinubu, as communicated in a letter read by the Senate President on Saturday, outlined that the securitization aims to decrease debt service costs and prolong the repayment period of existing loans. The Ways and Means provision serves as a mechanism for the government to borrow from the Central Bank, particularly in instances requiring short-term or emergency financing to address delayed cash receipts or fiscal shortfalls.