The Senate has approved the $800 million loan request put forth by President Bola Tinubu.
This decisive action occurred on Thursday, initiated by a motion from Senate Leader, Opeyemi Bamidele.
In his loan request, which was shared in the Senate earlier, President Tinubu explained the loan’s purpose.
The funds will be used to expand the national social safety net program and to lessen the harsh effects felt by the recent removal of the petrol subsidy.
According to Tinubu, the government plans to provide N8,000 monthly to 12 million households that are categorized as poor or low-income. This financial support is slated to continue for a period of six months.
The letter earlier forwarded to the senate 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 programme. 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.”
The new borrowing will be sourced from the World Bank.