Tinubu Seeks Senate Approval for $20.52bn, €1.045bn External Borrowing Plan

President Bola Tinubu has sought the Senate’s approval for a supplementary external borrowing plan of $20.52 billion and €1.045 billion to finance projects and programmes across key sectors of the economy.

The request was conveyed in a letter read by Senate President Godswill Akpabio during plenary on Tuesday.

In the letter, Tinubu said the proposed borrowing would fund projects in infrastructure, agriculture, healthcare, education, water supply, security, employment generation and financial management reforms.

He explained that the borrowing plan was designed to accelerate economic growth, bridge the country’s infrastructure funding gap and support socio-economic development.

“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 stated.

According to the President, the projects were selected after technical and economic evaluations, with consideration given to their potential contributions to Nigeria’s development.

He added that the initiatives were expected to create jobs, promote skills acquisition, encourage entrepreneurship, reduce poverty and improve food security.

Tinubu said most of the projects and programmes would be implemented across the 36 states of the federation and the Federal Capital Territory.

He justified the proposed borrowing by citing the scale of investment required to address the country’s infrastructure deficit.

“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.

The President noted that the funds would primarily support critical infrastructure projects, particularly in the power, transportation and healthcare sectors.

Reacting to the request, Akpabio said that some aspects of the borrowing plan had previously been considered in the budget, and that an external borrowing plan had also received approval earlier.

He said the Senate Committee on Local and Foreign Debts would review the proposal in collaboration with the committees on Appropriation and Finance.

The committees are expected to submit their report to the Senate within one week.

Akpabio said the outcome of the review would guide the Senate’s next steps on the President’s request.