Why Senate Approved $800m World Bank Loan

The Senate has approved $800 million World Bank loan requested by President Bola Tinubu for poverty alleviation among vulnerable Nigerians. 

This followed the consideration of the loan by the Committee of Whole during plenary on Thursday. 

Recall that the immediate past President Muhammadu Buhari had towards the end of his administration, forwarded same request to the 9th Senate in May, 2023.

But the 9th Assembly failed to approve the request before the expiration of its tenure in June 11.

In a letter read by Senate President, Godswill Akpabio during plenary, Tinubu pleaded with the 10th Senate to approve the same borrowing request.

Tinubu explained that the loan would be used to scale up the National Social Safety Net Programme.

The letter reads: “Please note that the Federal Executive Council (FEC) led by President Muhammadu Buhari approved an additional loan facility to the tune of $800 million.

“This is 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."

Tinubu hinted that under the conditional cash transfer window of the programme, the Federal Government would transfer the sum of N8,000 per month to 12 million poor and low income households.

He disclosed that the transfer would last for a period of six months, with a multiplier effect on about 60 million individuals.

In order to guarantee the credibility of the process, Tinubu insisted that digital transfers would be made directly to beneficiaries’ accounts and mobile wallets.