President Bola Ahmed Tinubu has sought the Senate approval to borrow $8,699,168,559 and €100 million to execute critical projects across the country.
The figures put together amount to N7, 097,738,729,598.
The president’s request was contained in a letter read at the commencement of plenary on Tuesday by Senate President Godswill Akpabio.
Daily Trust reports that the fresh loan request will add over N7 trillion to the national debt, which stood at N87.38 trillion as of June 2023, according to the Debt Management Office (DMO).
The $8,699,168,559 at the prevailing exchange rate is equal to N7, 009,268,074,728.66; while €100m equals N88, 470,654,870.00.
When added to the existing total public debt of N87.37trn, the debt profile will rise to over N94 trillion.
Tinubu, in the letter, explained that the request was part of the federal government 2022-2024 external borrowing plan approved by former President Muhammadu Buhari’s administration.
He said the projects to be funded with the loan cut across different sectors of the economy, and were selected based on economic evaluation and the expected contribution to the country’s development.
The letter reads, “I write in respect of the above subject and to submit the attached the federal government 2022-2024 external borrowing plan for consideration and early approval of the National Assembly to ensure prompt implementation of the projects.
“The Senate may wish to note that the past administration approved a 2022-2024 borrowing plan by the Federal Executive Council (FEC) held on May 15, 2023.
“The projects cut across all sectors, with specific emphasis on infrastructure, agriculture, health, water supply, roads, security, and employment generation as well as financial management reforms.
“Consequently, the required approval is in the sum of $8,699,168,559 and €100 million.
“I would like to underscore the fact that the projects and programmes in the borrowing plan were selected based on economic evaluations as well as the expected contribution to the social economic development of the country, including employment generation and skills acquisition.
“Given the nature of these facilities and the need to return the country to normalcy, it has become necessary for the Senate to consider and approve the 2022- 2024 external abridged borrowing plan to enable the government to deliver its responsibility to Nigerians.”