Tinubu seeks senate approval for $800 million World Bank loan

President Bola Tinubu has written a letter to the Senate to seek its approval to obtain a loan of $800 million from the World Bank to finance the National Safety Net Programme of the Federal Government.

The president’s request was contained in a letter read by the Senate President, Mr Godswill Akpabio, during plenary on Thursday, July 13, 2023.

The President’s letter is entitled: “Request for Approval of Additional Financing of the National Social Safety Net Programme Scale-up by the National Assembly”.

12 million Nigerians to receive N8,000

The letter from President Tinubu reads, “Please note that the Federal Executive Council, led by former President Muhammadu Buhari approved an additional loan facility to the tune of $800 million.

• “It is to be secured from the World Bank for the National Social Safety Net Programme.
• “The purpose of the facility is to expand coverage of shock responsive safety nets support for the poor and vulnerable Nigerians and to help them cope with the cost of meeting basic needs.
• “You may further wish to note that under the conditional cash transfer window of the program, the Federal Government of Nigeria will transfer the sum of N8,000 a month to 12 million poor and low-income people.
• “This is for six months with a multiplier effect on about 60 million individuals.
• ‘To guarantee the credibility of the process, digital transfers will be made directly to beneficiaries’ accounts and mobile wallets.
• “It is expected that the program will stimulate economic activity in the informal sector and improve nutrition, health, and education outcomes for beneficiary households.
• “Given the above, I wish to invite the senate’s approval for the additional loan facility of $800 million to be secured from the World Bank for the National Social Safety Net Programme.”

Akpabio, thereafter, referred the matter to the Committee of the Whole because “we have not yet constituted all the other necessary organs of the senate.”

What you should know

Former President Muhammadu Buhari had in May before the end of his tenure sought the approval of the National Assembly for the $800 million World Bank loan which is meant to help cushion the effect of petrol subsidy removal on poor and vulnerable Nigerians.

Buhari in the letter had said that the funds are for the National Social Safety Net Programme, which is intended to expand coverage of shock-responsive safety net support among the poor and vulnerable Nigerians.

However, members of the 9th session of the National Assembly could not conclude legislation before the end of the administration.

Recall that the immediate past Minister for Finance, Budget and National Planning, Zainab Ahmed, had earlier in April 2023, revealed that the Federal Government had secured the sum of $800 million from the World Bank to provide post-petroleum subsidy palliatives for over 50 million Nigerians ahead of the full deregulation of the downstream sector of the oil industry in June 2023.

Ahmed said that the $800 million fund is the first tranche of palliatives ready to be disbursed to 10 million households in the form of cash.