President Bola Tinubu has proposed to the National Assembly a plan for additional foreign borrowing of $20.52 billion and €1.04 billion for projects and programmes in various sectors
During Tuesday’s plenary, Senate President Godswill Akpabio read a letter that contained Tinubu’s request.
The president stated in the letter that the planned borrowing will help with financial management reforms, employment creation, infrastructure, agriculture, healthcare, education, water supply, and security.
According to him, the strategy was created to close the nation’s infrastructure financing gap and boost economic growth.
“The total facility for the projects and programmes under the borrowing rolling plan is 20 billion 517 million US dollars and 1 billion 45 million eighty-three thousand six hundred and forty-three euros respectively,” the letter reads.
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Tinubu said the projects were selected following technical and economic evaluations, with consideration given to their expected contributions to Nigeria’s socio-economic development.
He added that the initiatives were intended to create jobs, promote skills acquisition, encourage entrepreneurship, reduce poverty and improve food security.
The president said most of the projects and programmes would be implemented across the 36 states and the Federal Capital Territory.
“In light of the need for significant infrastructure investment in the country and the vast financial resources needed to address this gap, it has become essential to pursue prudent external borrowings to close the financing shortfall,” he said.
“It has become essential to pursue prudent external borrowings to close the financing shortfall. These funds will primarily be directed towards critical infrastructure projects in various sectors including power, transportation and healthcare, amongst others.”
Akpabio said aspects of the borrowing plan had previously been considered in the budget and that an external borrowing plan had also received approval in an earlier period.
He said the new request would be examined by the Senate Committee on local and foreign debts in collaboration with the Committees on Appropriation and finance.
The committees are expected to report back to the Senate within one week.
Akpabio said the review would determine the next steps regarding the president’s request.
