World Bank Loan: Tinubu urges senate approval for $800 Million

President Bola Tinubu, in an official correspondence addressed to the Senate, has sought the Senate’s approval for acquiring a loan of $800 million from the World Bank. The purpose of this loan is to provide financial support for the Federal Government’s National Safety Net Programme. 

The letter, titled “Request for Approval of Additional Financing of the National Social Safety Net Programme Scale-up by the National Assembly,” was read aloud by the Senate President, Mr. Godswill Akpabio, during the parliamentary session held on Thursday, July 13, 2023.

12 million Nigerians set to receive N8,000 each

President Tinubu’s letter states that the Federal Executive Council, led by former President Muhammadu Buhari, has approved an additional loan of $800 million from the World Bank. This loan is intended to support the National Social Safety Net Programme and expand the coverage of safety nets for impoverished and vulnerable Nigerians, helping them meet their basic needs. 

Also, through the conditional cash transfer window of the program, the Federal Government will provide N8,000 per month to 12 million individuals for a duration of six months, benefiting approximately 60 million people. 

He added that to ensure transparency, digital transfers will be directly made to beneficiaries’ accounts and mobile wallets. The program is expected to stimulate economic activity in the informal sector and improve the well-being of beneficiary households in terms of nutrition, health, and education outcomes. President Tinubu invites the Senate to approve the additional loan facility of $800 million for the National Social Safety Net Programme.

Afterwards, Akpabio, referred the issue to the whole Committee. He states that this is because “we have not yet constituted all the other necessary organs of the senate.”

All about the back story

The Nigeria former president, Muhammadu Buhari towards the end of his tenure had requested an approval from the National Assembly for the $800 million World Bank loan which was intended to relieve the effect of the petrol subsidy removal on the poor and vulnerable Nigerian citizens.

The president in the letter stated that the funds would be disbursed to the National Social Safety Net Programme to extend a huge coverage of shock-responsive safety support among underprivileged nigerians.

The members of the 9th session of the National Assembly however could not conclude legislation before the end of the Buhari administration.

Recall that the immediate past Minister for Finance, Budget and National Planning, Zainab Ahmed, had earlier in April 2023, revealed that the Federal Government had secured the sum of $800 million from the World Bank to provide post-petroleum subsidy palliatives for over 50 million Nigerians ahead of the full deregulation of the downstream sector of the oil industry in June 2023.

Recall that Zainab Ahmed, the past Minister for Finance, Budget and National Planning, had earlier in April 2023, disclosed that the Federal Government had gotten the amount of $800 million from the World Bank to give provide oil subsidy palliatives on more than 50 million Nigerians ahead of the deregulation of the downstream area of the oil business in June 2023.

Ahmed said that the $800 million fund is the first tranche of palliatives ready to be disbursed to 10 million households in the form of cash.