Fuel Subsidy: Buhari Asks Senate To Approve $800m World Bank Loan
President Muhammadu Buhari has asked the Senate to approve his request to obtain a loan facility of $800m from World Bank to finance the National Safety Net Programme.
The president’s request was contained in a letter read by Senate President, Ahmad Lawan, at the plenary session on Wednesday.
In the letter, the president said the $800m loan facility is intended to be used to support poor Nigerians and will be disbursed to poor households across the country.
According to him, the facility is an extension of the unconditional cash transfer being implemented by the federal government.
The president stated that the funds, when approved, will be sent to the bank accounts of the identified beneficiaries.
He also said the Federal Executive Council (FEC) has approved his request for obtaining the loan, noting that he is waiting for the approval of the Senate before going ahead with processing the loan.
The Minister of Finance and National Planning, Zainab Ahmed, announced in April that the federal government would secure an $800 million World Bank loan to be disbursed to about 50 million vulnerable Nigerians or 10 million households as part of its subsidy palliatives measures.
According to the Minister, the disbursement of the grant is in the light of the planned subsidy removal in June 2023.
The finance minister, who announced the decision, stated that the council concluded in its recently concluded meeting that it was not a favourable time for the action.
According to her, the NEC deliberated on the matter and resolved that it cannot be removed for now, adding that it was equally agreed on the need to continue the discussion on the matter and the necessary preparatory work in conjunction with states and representatives of the incoming administration.
The National Economic Council (NEC) on April 27 suspended the planned removal of subsidy on petroleum products by the end of the Buhari administration.
The NEC comprises the 36 state governors, the Governor of the Central Bank of Nigeria (CBN), and other co-opted government officials.
The finance minister, who announced the decision, stated that the council concluded in its recently concluded meeting that it was not a favourable time for the action.
According to her, the NEC deliberated on the matter and resolved that it cannot be removed for now.
The Debt Management Office had recently announced that the debt profile of Nigeria as of 31 December rose to N46.25 trillion or $103.1 billion.
The DMO while giving the breakdown stated that there was an increase of over N7 trillion from what the country owned in 2021.
Prompt News
