The Senate has approved President Bola Tinubu’s request for a $500 million loan to support the federal government’s mass metering initiative.
Following the presentation of a report by Haruna Manu, Vice-Chair of the Committee on Local and Foreign Debt, outlining the merits of the request, the approval, granted by the upper legislative chamber on Wednesday.
This $500 million loan is part of a larger borrowing plan totaling $8.6 billion and €100 million, initially proposed by President Tinubu to the National Assembly in November.
The Senate endorsed the request as an integral component of the 2022-2024 external borrowing rolling plan, after careful consideration of the report submitted by the Senate Committee on Local and Foreign Debt.
Manu, while presenting the report, acknowledged a slight delay in the approval process, attributing it to the absence of the Bureau of Public Enterprises (BPE) during the committee’s deliberations on the matter.
However, he emphasized the loan’s pivotal role in sustaining Nigeria’s economic growth trajectory and reinforcing the nation’s sovereignty.
Furthermore, Manu reassured that the loan agreement is meticulously structured to safeguard against any potential misuse or mismanagement of funds, ensuring transparent and accountable disbursement mechanisms.
“The committee recommends the approval of ongoing negotiations for external borrowing amounting to $500 million for BPE,” Manu stated, highlighting the significance of forwarding the loan terms from the funding agency to the National Assembly for scrutiny prior to execution.
With the Senate’s approval, this funding infusion is expected to hasten the process of implementing universal electricity metering, which is an essential step in strengthening Nigeria’s energy infrastructure and promoting socioeconomic development across the country.
