Senate Approves Tinubu’s $800m World Bank Loan Request

President Bola Tinubu’s request for a $800 million loan from the World Bank has been approved by the Nigerian Senate.

This came after the Committee of the Whole’s discussion of the loan during Thursday’s plenary.

Towards the end of his presidency, former President Muhammadu Buhari had sent the same request to the 9th Senate in May. However, the request could not be considered by the 9th Assembly before its term ended on June 11.

The same borrowing request was made by Tinubu to the 10th Senate in a letter that was read aloud by Senate President Godswill Akpabio on Thursday during plenary.

The loan would be used to expand the National Social Safety Net Programme, the President explained in the letter.

“Please take note that the Federal Executive Council (FEC) headed by President Muhammadu Buhari has approved a new loan facility totaling $800 million,” the letter stated.

“The World Bank must provide this for the National Social Safety Net programme. The FEC extract copy is attached.

“You might also want to be aware of the facility’s goal, which is to increase the poor and vulnerable Nigerians’ access to shock-responsive safety net support. This will help them meet their basic needs.

“You may also want to be aware that the Federal Government of Nigeria will distribute N8,000 per month to 12 million low-income and poor households under the program’s conditional cash transfer window.

“This is for a six-month period and will have an impact on about 60 million people.

Digital transfers will be made to beneficiaries’ accounts and mobile wallets directly to ensure the legitimacy of the procedure.

In related news, the Senate on Thursday approved the N819.5 billion amended supplementary budget for 2022 in its third reading.

The Senate included N500 billion for President Tinubu’s request to cushion the effects of subsidy removal in the revised N819.5 billion 2022 supplementary budget.

“N500 billion for palliatives and other capital expenditure to cushion the effect of recent subsidy removal policy,” the amendment’s executive summary reads.

“N185, 236,937,815 billion to Ministry of Works and Housing to lessen the impact on road infrastructure across the 6 geopolitical zones of the severe flooding experienced in the country in 2022.”

The Ministry of Finance, Budget, and National Planning was thus given custody of the N500 billion allocated for mitigating the effects of subsidy removal.

Additionally, 469 federal lawmakers received N70 billion in funding for better working conditions.