In a letter to the House of Representatives, President Bola Tinubu requested permission for the Federal Government to borrow $8.699 billion and €100 million as part of the 2022–2024 foreign borrowing strategy.
Additionally, on Wednesday, November 29, 2023, the President requested an audience from the House so that he may present the planned N27.5 trillion budget for the 2024 fiscal year before a joint session of the National Assembly.
Two distinct letters from the President conveyed their requests to Speaker of the House Hon. Abbas Tajudeen, who read the letters during Tuesday’s resumed plenary.
According to him, the loans were meant to be used for cross-sector initiatives, with a focus on infrastructure, agriculture, health, education, water supply, roads, security, and the creation of jobs in addition to financial management.
“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.
In the second letter, President Tinubu said: “May I crave the kind indulgence of the House of Representatives to grant me the …1100 hours on Wednesday, 29th November 2023, to formally present the 2024 appropriation bill to a joint session of the National Assembly. While I look forward to addressing the joint session, please accept Rt Hon Speaker, the assurances of my highest regard.”