President Bola Tinubu has asked the National Assembly to approve a proposed external borrowing plan worth $20.52bn and €1.04bn to fund projects and programmes in key sectors of the economy.
The request was contained in a letter read by Senate President Godswill Akpabio during plenary on Tuesday.
According to the president, the proposed loans would finance initiatives covering infrastructure, agriculture, healthcare, education, water supply, security, job creation and financial management reforms.
Tinubu said the borrowing plan was intended to boost economic growth and address Nigeria’s infrastructure funding deficit.
“The total facility for the projects and programmes under the borrowing rolling plan is 20 billion 517 million US dollars and 1 billion 45 million eighty-three thousand six hundred and forty-three euros respectively,” the letter reads.
He explained that the projects were chosen after technical and economic assessments, with their potential impact on the country’s socio-economic development considered during the selection process.
The president added that the initiatives were expected to generate employment, improve skills acquisition, support entrepreneurship, tackle poverty and strengthen food security.
He noted that most of the projects would be implemented across Nigeria’s 36 states and the Federal Capital Territory.
Tinubu said the scale of investment required to address the country’s infrastructure deficit had made external borrowing necessary, provided the funds were obtained and managed prudently.
“In light of the need for significant infrastructure investment in the country and the vast financial resources needed to address this gap, it has become essential to pursue prudent external borrowings to close the financing shortfall,” he said.
He further explained that the funds would be channelled mainly into essential infrastructure, particularly in sectors such as power, transportation and healthcare.
“It has become essential to pursue prudent external borrowings to close the financing shortfall. These funds will primarily be directed towards critical infrastructure projects in various sectors including power, transportation and healthcare, amongst others.”
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Reacting to the request, Akpabio said some components of the borrowing plan had previously been considered during budget deliberations, while an external borrowing plan had also received approval in an earlier period.
He said the latest proposal would be reviewed by the Senate Committee on Local and Foreign Debts, working alongside the committees on Appropriation and Finance.
The committees have been given one week to submit their findings to the Senate.
Akpabio said the outcome of the review would guide the Senate’s next steps on Tinubu’s request.