President Bola Ahmed Tinubu has written to the Senate seeking approval to borrow $5 billion as part of efforts to finance key government obligations and address budget shortfalls.
The request was contained in a letter sent to the President of the Senate, Senator Godswill Akpabio, and read during plenary at the National Assembly in Abuja.
According to the President, the proposed loan is expected to be obtained from the Abu Dhabi Bank and will be used mainly to support budget deficit financing as well as other financial commitments of the Federal Government.
In a separate letter to the Senate, President Tinubu also sought approval for an additional $1 billion loan facility expected to come through a United Kingdom Export Finance arrangement with London Citi Bank.
The second loan is intended to support the rehabilitation and upgrade of major port facilities in the country, including the Lagos Port Complex and Tin Can Island Port.
Government officials say the port rehabilitation project is aimed at addressing existing infrastructure challenges, improving efficiency in cargo handling and strengthening safety standards at the ports.
The project is also expected to support the federal government’s broader economic strategy of boosting non-oil exports and positioning Nigeria as a major trade hub within the region.
Following the presentation of the President’s letters, Senate President Godswill Akpabio referred the request to the Senate Committee on Local and Foreign Debts for further legislative consideration.
The committee, which is chaired by Senator Aliyu Wamakko, has been tasked with reviewing the loan requests and reporting back to the Senate for possible approval.
If approved by the lawmakers, the funds are expected to support government spending plans and infrastructure development projects considered critical to Nigeria’s economic growth.
More details are expected to emerge as the Senate begins deliberations on the proposed borrowing plan.
Post A Comment: