Senate approves Tinubu’s $800m  loan request  from World Bank

The Senate, on Thursday, approved President Bola Tinubu’s request for the sum of $800 million loan as additional fund for the financing of the National Social Safety Net Programme set up by the National Assembly.

The Senate also amended the 2022 Supplementary Budget.

This followed Tinubu’s request for the approval. The President’s request was contained in a letter he forwarded to the upper chamber through the President of the Senate, Godswill Akpabio, which was read on the floor of the Assembly during plenary.

This will help to expand coverage of shock responsive safety net supports for all and vulnerable Nigerians, which among other things will assist them in coping with basic needs.

This approval will enable  12 million Nigerians  get =N=8,000 for a period of six month through digital transfers made directly to beneficiaries accounts and mobile wallets.

Social safety net programmes will help to protect families from the impact of economic shocks, natural disasters, and other crises.

Former President Buhari had in the twilight of his tenure, sent a similar letter to the Senate but the lawmakers were unable to carry out a legislative action on it because it was received late.

In the new letter addressed to the Senate President, Godswill Akpabio and read on Thursday, President Tinubu explained that the Nigerian Government would transfer the sum of =N=8,000 a month to 12 million poor and low income  households for a period of six months with a multiply effects on about 60 million individuals.

The letter reads: “Request for approval of additional financing of the national social safety net programme set up by the National Assembly.

Tinubu explained that the Federal Executive Council led by ex-President Muhammadu Buhari had approved an additional loan facility to the tune of $800 million to be secured from the World Bank, to finance the Social Safety Net Programme.

The President noted further that the purpose of the facility was to expand coverage of shock responsive safety net supports for all and vulnerable Nigerians to meet the cost of their basic needs.

“Request for approval of additional financing of the National Social Safety Net Programme set up by the National Assembly. It is with pleasure that I refer the above matter to you,” the statement partly read.

“Please note that the Federal Executive Council led by President Muhammadu Buhari GCFR had approved an additional loan facility to the tune of USD800 million to be secured from the World Bank to finance the Social Safety Net Programme, copy of the Federal Executive Council is extract is attached here.

“You may also wish to know that the purpose of the facility is to expand coverage of shock responsive safety net supports for all and vulnerable Nigerians and the cost of meeting 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 a month to 12 million poor and low income households for a period of six months with a multiply 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 and education outcomes for beneficial households.

“Giving the above, I wish to invite the Senate to kindly grant approvals for additional loan facilities USD800milliom to be secured from World Bank for the National Social Safety Net Programme