The Senate has greenlit President Bola Tinubu’s request for a $500 million loan from the World Bank.
The loan, part of the Nigeria Distribution Sector Recovery Program, is designated for the Bureau of Public Enterprises to enhance the financial and technical performance of electricity distribution companies.
The approval, granted on Tuesday, followed the review of the report submitted by the Senate Committee on Local and Foreign Debts, chaired by Senator Aliyu Wammako (APC, Sokoto North), covering the 2022 – 2024 External Borrowing (Rolling) Plan for the Bureau of Public Enterprises.
Presenting the report, Vice Chairman of the Committee, Senator Haruna Manu (PDP Taraba Central), stated, “That the Senate do approve the sum of $500,000,000 (Five Hundred Million United States Dollars) in the ongoing negotiation of External Borrowing for the Bureau of Public Enterprise.”
This $500 million loan is part of the $7.94 billion loan President Bola Tinubu sought Senate approval for on November 1st, 2023, under the 2022-2024 external borrowing plan, which also included a request for €100 million.
However, the Senate granted approval to borrow $7.4 billion during its special plenary on December 30, after considering the report of the Committee on local and foreign debt.
Manu emphasized that the terms and conditions of the loan would not compromise Nigeria’s economic growth, integrity, or independence as a sovereign nation.
He elaborated, “The Senate of the Federal Republic of Nigeria will recall that at the Plenary on November 1st, 2023, a communication from Mr. President requesting the approval of Federal Government 2022 – 2024 External Borrowing Plan was read.”
“The External Borrowing (Rolling) Plan contains a request for approval of $7,944,508,559.00 and Euro 100,000,000 as grant component.”
“The Committee deferred consideration on the proposed project and amount for Bureau of Public Enterprises due to the agency’s failure to appear before the committee to defend the proposed project for their agency as captured in the External Borrowing Plan.”
“Following the resumption of the Committee’s consideration of the outstanding request, and after legislative interactions, deliberations, and due diligences, the committee hereby submit its report and sought for the approval of the recommendation therein.”
“The request of Mr. President is in compliance with the provisions of the Debt Management Office (Establishment) Act 2003 and the Fiscal Responsibility Act 2007 which both enjoin the President to seek and obtain the approval of the National Assembly.”
“The provisions of the above statutes together with the revised guidelines for External and Domestic Borrowing issued by the DMO pursuant to its powers under the DMO Act, requires that all Tiers of Government of the Federation shall borrow only under the following conditions…”
