The President of Nigeria, Muhammadu Buhari is seeking approval for the sum of $800 million loan from World Bank.
DiplomaticWatch gathered that Nigerian President requested for this approval on Wednesday in a letter written to the upper chamber of the nation’s National Assembly- the Senate.
The letter was read in the house by the President of the Senate, Ahmed Lawan during the plenary session.
President Buhari noted that the loan is to fund the National Social Safety Network Programme (NSSP), a program under his administration.
A meager amount of N5,000 (Nigerian currency which is about $10.8 with the N462.50 to $1 rate) is expected to be paid to 10.2 million poor and low-income households via transfer.
The transfer which will be done directly to beneficiaries’ account for a period of 6months is expected to have effect on 60million individuals in Nigeria.
Part of the letter reads:
“There is the need to request for your consideration and approval to ensure early implementation.”
“The Senate, may wish to note that the programme is intended to expand coverage of shock responsive Safety Net support among the poor and vulnerable Nigerians. This will assist them in coping with the costs of meeting basic needs.”
“You may wish to note that, the Federal Govemment of Nigeria under the conditional cash transfer window of the programme will transfer the sum of N5,000 per month to 10.2 million poor and low-income household for a period of six months with a multiplier effect on about 60 million individuals.”
Although, this is not the first time the President Buhari-led administration in Nigeria will be requesting approval for loans to cushion effect of the economic hardship facing Nigerians, but he added that the lawmakers should speed up action on the request so as to begin proper implementation.
Meanwhile, President Buhari’s tenure will end on May 29th, 2023 as he will hand-over to his successor, Bola Ahmed Tinubu (having won the February 25 presidential election in Nigeria).
Prior to the request, Nigerian government had previously announced in April, 2023 that a $800 million World Bank grant will be used as part of its subsidy palliatives measures.
In the previous announcement, Nigeria’s Minister of Finance, Budget and National Planning, Zainab Ahmed, said the presentation of the grant is in connection with the removal of subsidy by June, 2023.
Meanwhile, by the period of the subsidy removal, a new administration will be in power which raises concerns of how the policy will be effective.
Nigeria’s Finance Minister disclosed that talks is ongoing with the Presidential Transition Council (PTC) to accept and continue the palliative program.
The recent request for approval by President Buhari is raising so much concerns and controversies, considering the debt profile of Nigeria.