Tinubu Administration Seeks $4.4bn Fresh Loans 

President Bola Tinubu led Federal Government has disclosed its plan to access $4.4billion loan from the international lender and the Africa Development Bank over the next one year.

This is coming after Tinubu administration borrowed a total of $4.95bn in loans from the World Bank in the past 12 months, pushing the total public debt to N101tn amidst worries about the increasing costs of servicing external debt.

The nation’s public debt was put at approximately N97trillion as of December 2023, according to the Debt Management Office data.

This came as the government still expects fresh loan approval worth $4.4bn from the international lender and the Africa Development Bank over the next one year.

An analysis by our correspondent showed that the bank approved funding for six projects including $750m for power sector financing, $500m for women empowerment, $700m for girl child education, $750m for renewable energy solutions, $750m on resource mobilisation reforms and $1.5bn for economic stabilisation reforms.

Findings by The PUNCH showed that on June 9, 2023, the World Bank board approved a loan of $750m to boost Nigeria’s power sector. The bank said the loan would serve as additional financing for the power sector recovery performance-based operation.

It also announced the approval of a loan of $500m on June 27, 2023to help Nigeria drive women’s empowerment. This was the second loan approved by the bank under the current administration. It provided a scale-up financing for the Nigeria for Women Programme.

Meanwhile, the government is expecting about $4.4bn in new loans from the World Bank and the AfDB. The government is pursuing a $500m loan to address the need for better connectivity in rural road infrastructure and agricultural marketing, a $750m loan if it reintroduces previously suspended telecom tax and other fiscal measures, and a $500m to address the challenges faced by Internally Displaced Persons nationwide.

Punch

 

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