The Senate has granted approval for President Tinubu’s proposal to borrow $7.8 billion and €100 million, forming a segment of the Federal Government’s 2022-2024 borrowing plan.
This request received Senate endorsement following the review and adoption of the report presented by its committee on Local and Foreign Debt during the Saturday plenary session.
Tinubu highlighted that the loan facility, sanctioned by the former President Muhammadu Buhari-led Federal Executive Council on May 15, 2023, aims to bolster infrastructure, healthcare, education, agriculture, security, and other sectors.
Stressing the need to bridge the financial gap and restore the nation’s economic activities, Tinubu emphasized the necessity of the foreign loan.
The allocated funds are slated for infrastructure development, agricultural enhancement, healthcare advancement, educational improvements, water supply initiatives, security bolstering, employment creation, and financial management reforms.
Additionally, the Red Chamber endorsed Tinubu’s proposal to securitize the Central Bank of Nigeria’s N7.3 trillion Ways and Means advances to the Federal Government.
In a letter conveyed by the Senate President during Saturday’s session, Tinubu articulated that securitization aims to curtail debt service costs and extend the repayment period for existing loans.
The Ways and Means provision allows the government to secure short-term or emergency financing from the Central Bank to address delayed government cash receipts or fiscal deficits.
