Tinubu wants Senate to approve $800m World Bank loan

Abuja, NIGERIA — President Bola Tinubu on Thursday asked the Senate to amend the 2022 Supplementary Appropriation Act and approve a request for obtaining a loan facility of $800 million from the World Bank to finance the National Safety Net Programme of the Federal Government.

The President’s request was contained in a letter read by Senate President, Godswill Akpabio, at the plenary session.

In the letter sent to the Senate, the President said the $800million loan facility is intended to be used to support poor Nigerians and will be disbursed to poor households across the country.

Also on Thursday, the President urged the Senate to approve a request of N500billion to provide palliatives to cushion the effect of fuel subsidy removal on Nigerians.

He said the facility is an extension of the unconditional cash transfer being implemented by the Federal Government.

Tinubu’s letter of request for the $800million World Bank loan, reads in part: “Please note that the Federal Executive Council led by President Muhammadu Buhari approved an additional loan facility to the tune of $800 million to be secured from the World Bank for the National Social Safety Net programme.

Copy of FEC’s extract attached.

“You may also wish to note that the purpose of the facility is to expand coverage of shock responsive safety net support among the poor and vulnerable Nigerians. This will assist them in coping with basic needs.

“You may further wish to note that under the conditional cash transfer window of the programme, the Federal Government of Nigeria will transfer the sum of N8,000 per month to 12 million poor and low income households for a period of six months, with a multiplier effect on about 60 million individuals.

“In order to guarantee the credibility of the process, digital transfers will be made directly to beneficiaries’ accounts and mobile wallets.

“It is expected that the programme, will stimulate economic activities in the informal sector, and improve nutrition, health, education, and human capital development of beneficiaries’ households.

“Given the above, I wish to invite the Senate to kindly grant approval for the additional loan facility of $800 million to be secured from World Bank for the National Social Safety Net Programme.

“While hoping that this submission will receive expeditious consideration by the Senate, please accept the assurances of my highest regards.”