Tinubu seeks Senate’s approval for $800 million World Bank loan

President Bola Ahmed Tinubu on Thursday submitted a request to the Senate for a $800 million World Bank loan approval.

The request is coming barely 24 hours after the President forwarded to the National Assembly an amendment to the 2022 supplementary Appropriation Act to allow the Federal Government source N500 billion for palliatives to cushion the effect of the petrol subsidy removal.

In a letter addressed to the Speaker of the House of Representatives, Mr Tajudeen Abbas, and read at plenary on July 12, Tinubu said the money will be sourced from the 2022 supplementary Appropriation Act of N819.5 billion.

Persecondnews recalls that former President Muhammadu Buhari had sent the same $800 million loan request to the 9th Senate in May, but the Assembly was unable to review the request before its term ended on June 11, 2023.

In the letter read by the Senate President, Godswill Akpabio, during Thursday’s plenary, Tinubu explained that the loan, which would be obtained from the World Bank, is intended to expand the National Social Safety Net Programme (NSSNP).

Tinubu’s letter reads: “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 program. A copy of FEC’s extract is 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.”

Meanwhile, the House of Representatives on Thursday amended the 2022 supplementary Appropriation Act and approved Tinubu’s request to source for N500 billion from the approved budget to provide subsidy palliatives for Nigerians.

The lawmakers urged the President to ensure judicious use of the funds as requested.