Buhari seeks approval of $800m World Bank loan in fresh letter to senate

Buhari seeks approval of $800m World Bank loan in fresh letter to senate

President Muhammadu Buhari has urged the senate to approve his request for a $800 million loan from the World Bank to finance the National Safety Net Programme.

The president’s request was conveyed in a letter read aloud by Senate President, Ahmad Lawan, during Wednesday’s plenary session.

According to the president’s letter to the lawmakers, the $800 million loan facility is aimed at helping underprivileged Nigerians and would be distributed to poor households across the country.

He asserted that the facility is an extension of the federal government’s unconditional cash transfer program.

The president partly wrote, “Please note that the Federal Executive Council approved an additional loan facility to the tune of USD800 million to be secured from the World Bank, for the National Social Safety Net Programme and the need to request for your consideration and approval to ensure early implementation.

Nigerian senate

“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 Government 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 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.

“The NASSP being a social intervention programme will stimulate activities in the informal sector, improve nutrition, health, education and human capital development of beneficiary households.”

Buhari added, “Given the above, I wish to invite the Senate to kindly approve an additional loan facility to the tune of USD8OO million to be secured from the World Bank for the National Social Safety Net Programme,” while hoping that the request will “receive expeditious consideration by the Senate.”

Recall that Zainab Ahmed, Minister of Finance and National Planning, stated in April that the federal government would receive a $800 million World Bank loan to be distributed to about 50 million underprivileged Nigerians or 10 million households as part of its subsidized palliatives plans.

Nigeria’s borrowing from the World Bank had reached $14.34bn as of March 31, 2023.


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