The Senate, on Thursday, approved President Bola Tinubu’s request for $800 million (about N500 billion) loan as additional fund for the financing of the National Social Safety Net Programme set up by the National Assembly.
On the same day, the House of Representatives also granted the request.
Following President Tinubu’s request for the approval, the Senate also amended the 2022 Supplementary Budget. The President’s request was contained in a letter he forwarded to the upper chamber through the President of the Senate, Godswill Akpabio, which was read on the floor of the Assembly during plenary.
The President explained that the Federal Executive Council led by ex-President Muhammadu Buhari had approved an additional loan facility to the tune of $800 million to be secured from the World Bank, to finance the Social Safety Net Programme.
He noted further that the purpose of the facility was to expand coverage of shock responsive safety net supports for all and vulnerable Nigerians to meet the cost of their basic needs.
The President’s statement read: “Request for approval of additional financing of the National Social Safety Net Programme set up by the National Assembly. It is with pleasure that I refer the above matter to you.
“Please note that the Federal Executive Council led by President Muhammadu Buhari GCFR had approved an additional loan facility to the tune if USD800 million to be secured from the World Bank to finance the Social Safety Net Programme, copy of the Federal Executive Council is extract is attached here.
“You may also wish to know that the purpose of the facility is to expand coverage of shock responsive safety net supports for all and vulnerable Nigerians and the cost of meeting 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 a month to 12 million poor and low income households for a period of six months with a multiply 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 and education outcomes for beneficial households.
“Giving the above, I wish to invite the Senate to kindly grant approvals for additional loan facilities USD800milliom to be secured from World Bank for the National Social Safety Net Programme.
“While hoping that this submission will receive an expeditious consideration by the Senate. Distinguished Senate President and distinguished members, please accept the assurances of my highest regards”.
After reading the letter, Akpabio referred the letter to Committee of a Whole for further legislative action.
The Committee, upon deliberation, amended the 2022 Supplementary Budget and approved Tinubu’s request.
Also the House of Representatives, the President’s request was approved amending the Supplementary budget.
In a letter on Wednesday, President Tinubu had sought the approval of the N500 billion.
The House considered the bill and passed it.
The president had at his inauguration removed the controversial subsidy regime on petroleum which caused the retail price of PMS to increase by 200 per cent.
