…To defend 2024 budget, borrowing plan at joint plenary session
Nigeria’s President, Asiwaju Bola Ahmed Tinubu has again sought the approval of the National Assembly for fresh loans to the tune of $8.7billion and €100 million.
In a letter to the House of Representatives, the President said the loans were intended to fund projects which cut across sectors, particularly infrastructure, agriculture, health, education, water supply, roads, security, and employment generation as well as financial management. among others.
The letter read, “I write with reference to above subject matter and to submit the attached Federal Government 2022-2024 external borrowing rolling plan for consideration and approval of the National Assembly to ensure optimum implementation of the budget.
“The Honourable members may wish to know that the past administration approved the 2022-2024 borrowing plan at the Federal Executive Council held on 15 May, 2023.
“Following the removal of the fuel subsidy and its attendant impact on our economy, African Development Bank and the World bank group have indicated interest in assisting the country to mitigate the impact with the sum of one billion USD and 1.5 billion USD respectively; in addition to the FEC approved 2022-2024 external abridged borrowing plan.
“Consequently, the required approval is in the sum of 8,699,168,559 USD, and 100 million Euros.
“I would like to underscore the fact that the projects and programmes in the borrowing plan were selected based on positive technical economic evaluation as well as the expected contribution to the socio-economic development of the country including employment generation, skills acquisition, support towards the emergence of young entrepreneurs, poverty reduction and food security to improve the livelihood in all 36 states and the FCT.
“Considering the huge infrastructure deficit in the country and the enormous financial resources required to bridge the gap in funding infrastructure in the face of dwindling financial resources, it has become imperative that we resort to prudent external borrowing to bridge the financial gap which will be largely be applied to key infrastructure projects including power, railway, health among others.
“Given the nature of these facilities and the need to return the country to normalcy, it has become necessary to request the House of Representatives to consider and approve the 2022-2024 external abridged borrowing plan to enable the government deliver its responsibilities to Nigerians through expedient disbursement and efficient project implementation.
“I hereby forward the proposed 2022-2024 external borrowing plan and trust that it would receive judicious consideration and passage of the House of Representatives,” the letter read.
The President also wrote to the Senate. The letter by the President was read by the Senate President, Godswill Akpabio, at the plenary on Tuesday.
The letter read, “I write in respect of the above subject and to submit the attached Federal Government 2022-2024 external borrowing plan for consideration and early approval of the National Assembly to ensure prompt implementation of the projects.
“The Senate may wish to note that the past administration approved a 2022-2024 borrowing plan by the Federal Executive Council held on May 15, 2023.
“The project cuts across all sectors, with specific emphasis on infrastructure, agriculture, health, water supply, roads, security, and employment generation as well as financial management reforms.”
It added, “Consequently, the required approval is in the sum of $8,699,168,559 and €100 million.I would like to underscore the fact that the projects and programmes in the borrowing plan were selected based on economic evaluations as well as the expected contribution to the social economic development of the country, including employment generation, and skills acquisition.
“Given the nature of these facilities, and the need to return the country to normalcy it has become necessary for the senate to consider and approve the 2022-2024 external abridged borrowing plan to enable the government deliver its responsibility to Nigerians.”
The President is expected to defend the borrowing plan and the 2024 budget in a joint plenary session today which the National Assembly granted.