Nigerian President Bola Ahmed Tinubu has proposed new foreign loans totaling $8.699 billion and €100 million. This request, submitted to the National Assembly, follows a previous application for $7.8 billion and €100 million.
Tinubu conveyed the request in letters to both chambers of the National Assembly. According to him, these loans will fund road construction, infrastructure development, agriculture, and food security.
In report by the Sun, Senate President Godswill Akpabio and House Speaker Tajudeen Abbas shared details at a plenary session. They highlighted the loans’ inclusion in the Federal Government’s 2022-2024 external borrowing plan.
“The projects cover various sectors, with a focus on infrastructure, agriculture, health, and more,” said Tinubu. “These initiatives are vital for socio-economic development, including job creation and skills acquisition.”
This loan proposal comes ahead of a N26 trillion national budget presentation to the National Assembly.
Tinubu stressed the importance of these loans in returning the country to normalcy. The funds, sought from sources like the World Bank and African Development Bank, will target power, railway, health, and other sectors.
Amidst subsidy removals and economic impacts, the AfDB and World Bank have expressed willingness to support Nigeria with significant funds, reinforcing the Federal Executive Council’s borrowing plan.
“The need for these loans stems from our infrastructure deficit and the substantial funds required to bridge this gap,” Tinubu explained.
The President’s request emphasizes the need for prudent external borrowing, focusing on infrastructure projects to bolster the economy.
Meanwhile, Dr. Frank Onyebu, former chairman of the Manufacturers Association of Nigeria, Apapa branch, urged the government to manage governance costs more effectively instead of accruing more debt. He emphasized the importance of investing in areas that generate income, cautioning against borrowing for consumption.
“Our focus should be on income generation and prudent use of funds,” Onyebu advised. “Any future borrowings must be channeled into productive uses.”
Tinubu’s loan proposal underscores a strategic approach to enhance Nigeria’s infrastructure and economic resilience.
