The Senate has given its consent to President Bola Tinubu’s appeal to borrow $800 million from the World Bank.
A letter from the president, read by Senate President Godswill Akpabio, was presented during Thursday’s plenary session.
Tinubu outlined in the letter that the loan’s purpose is to enhance the national social safety net program.
The request was accompanied by a decision from the Federal Government to allocate a monthly payment of N8,000 to 12 million households in need, covering a period of six months.
The funds, as per Tinubu’s statement, would be transferred directly to the accounts of the beneficiaries who have been identified.
The President’s letter partly reads: ‘Please note that the federal executive council led by President Muhammadu Buhari approved an additional loan facility to the tune of $800 million to be secured from the World Bank for the National Social Safety Net programme, Copy of FEC’s extract attached.’
‘You may also wish to note that the purpose of the facility is to expand coverage of shock responsive safety net support among the poor and vulnerable Nigerians. This will assist them in coping with 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 per month to 12 million poor and low income households for a period of six months, with a multiplier 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, education, and human capital development of beneficiaries’ households.’
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‘Given the above, I wish to invite the Senate to kindly grant approval for the additional loan facility of $800 million to be secured from World Bank for the National Social Safety Net Programme.’
‘While hoping that this submission will receive expeditious consideration by the Senate, please accept the assurances of my highest regards.’
Yesterday, the Senate retreated into a closed session at 3:32 pm and reconvened at 4:41 pm, utilizing the time to brainstorm and expedite the passage of the request.
Senator Godswill Akpabio, serving as the President of the Senate, fulfilled the duty of reading the President’s letter during the plenary session.
The plans put forward by President Tinubu have been challenged by both the Nigeria Labour Congress (NLC) and the Trade Union Congress of Nigeria (TUC), asserting that they are at odds with the efforts of the Presidential Technical Committee on subsidy removal.
It said: stating, ‘Any palliative payment must be in line with the agreement reached with labour in line with the technical committee meeting.’
According to the NLC and TUC, the President’s actions are not only undemocratic but also reveal that he is employing the committee as a mere cover-up for his own self-serving intentions.